FOLLOWING news that cross-Solent ferry operator Red Funnel was up for sale, Isle of Wight councillors have said they are interested in buying a share of the company.

The Island Independents group has announced it is actively pursuing a number of options for the acquisition of Red Funnel from insurance giant Prudential.

It was announced last week that Red Funnel, which employs 450 people, has been put on the market with a price tag of £250m –£50m more than the Island council’ entire investment fund.

Australian bank Macquarie has been instructed to sell the Southampton-based company on behalf of Infracapital, Prudential’s infrastructure fund.

Island independent leader, Julia Baker-Smith and her team have since met with Red Funnel directors Kevin George and Murray Carter to open discussions.

Cllr Baker-Smith said councillors were also speaking with a number of potential investors to prepare a bid immediately after the local elections in May.

Southampton City Council leader Simon Letts said that he had received an approach from the Island Independents and he had asked his investment team to make some preliminary checks.

“If we were to make an investment it would only be a small stake and only provided it proved to be a solid investment.”

Cllr Baker-Smith said that having looked at the accounts the she was satisfied Red Funnel was a “sound financial investment”.

“Having agreed as a full council through the treasury management strategy to borrowing of £200m for investments on and off the Island and to raise revenue and support the long term financial future of the Island, it seems just the sort of opportunity we should be investing in – to keep the Island pound on the Island and protect the future of our key transport connections.”

She said the council would also invest in “infrastructure that truly benefits the Island economy.”

Cllr Luisa Hillard, East Cowes, echoed this sentiment: “Another advantage is that this could give us the ability to influence the regeneration activities in East Cowes, and of the Marine Industrial Quarter.”

The council and Red Funnel have clashed over plans for a new terminal at East Cowes which would require moving and demolishing several existing business premises; the plans were turned down.

Although the firm has permission to expand its marshalling yard, proposals for a new terminal building have been rejected by Island councillors and are likely to be the subject of a planning inquiry in the summer.

Cllr Baker-Smith said she couldn’t comment on plans, already approved, to build a new Southampton terminal for Red Funnel. The plans would see the Red Funnel terminal move to Trafalgar Dry Dock in the Western Docks which in turn would free up land for the £450 million Royal Pier development.

Last July Mr George said the two schemes had been ‘uncoupled’ and the Southampton terminal would progress regardless of the fate of the Island plans.