Swindon railway workers were today assured that their jobs will be safe if the proposed multi-million pound Railtrack takeover bid gets the go ahead.

Network Rail a not-for-profit company limited by guarantee (CLG) is looking to acquire the shares in the collapsed rail company for £500 million. The newly named company is now in talks with Railtrack who are considering the formal offer, which includes £300 million of taxpayers' money.

A Network Rail spokesman said: "It is a proposal at this stage. We hope to be sitting down with Railtrack Group to talk about the acquisition of the PLC.

"The proposal is not based at all on job cutting."

Railtrack Group Chairman, Geoffrey Howe, said: "We welcome today's approach by Network Rail. The directors will consider the proposal in detail. It will then be up to the shareholders to have the final say as to whether it should be accepted."

Railtrack has about 250,000 shareholders who own a total of around 520 million shares. The proposal would provide about 1p a share, while the group's assets would be worth around another £1.50 a share.

In total the £500 million will mean shareholders will get around £2.50 a share.

Shares were suspended at £2.80 when Transport Secretary Stephen Byers took steps to place Railtrack in administration last October.