Metronet administrator sees TfL takeover next year

LONDON (Reuters) - Transport for London looks set to take control of Metronet early next year after the failed rail contractor's administrator said it had given up trying to find another buyer.

The Metronet consortium was forced into administration in July after running up 2 billion pounds of unscheduled costs while renovating nine of London's 12 underground lines.

The renovations follow years of complaints by Londoners about delays, breakdowns, overcrowding and sweltering conditions.

Transport for London, which runs the capital's buses and subway, put in a bid for Metronet last month, and plans to break up the remains of its 17 billion pounds contract and invite other engineering firms to bid.

Administrator Ernst & Young, which had been trying to sell Metronet to the highest bidder to pay off creditors, said on Monday it "will not take any active steps to market the Metronet companies".

"The PPP Administrators will be working closely with Transport for London to progress their proposal towards an exit from administration, preferably early in the New Year," said Ernst & Young's Alan Bloom.

Metronet is owned by WS Atkins ATK.L, Balfour Beatty BBY.L, the rail equipment unit of Canada's Bombardier (BBDa.TO), EDF Energy (EDF.PA) and Thames Water MBL.AX.

(Reporting by Pete Harrison)