Railtrack staff in York today were handed what could be a golden opportunity to make a "killing" on shares in the company.

The troubled rail business, whose shares nose-dived earlier this week on the Stock Exchange, has launched its latest "sharesave" scheme to all staff.

This entitles employees to make regular savings from their pay over the next three or five years and earn a tax-free bonus. And then they can use their savings and bonus to buy Railtrack shares in three or five years time at a price fixed in the middle of this week's stock market collapse - and at a 20 per cent discount.

The price after discount has been set at just £3.45. But a dramatic revival in Railtrack's fortunes on the Stock Exchange this morning saw prices soar to £3.88 by 11am from an opening price of £3.50.

If shares in the company continue to recover substantially over the next three or five years, staff could end up quids-in.

Railtrack has told employees it hopes shares will increase in value over the period, and employees will be able to buy shares in three or five years' time for well below the market price.

"You can then sell the shares and receive the proceeds in cash or hold on to the shares," it said.

"However, if the market price falls you are free to stop your savings contract if you wish."

The development comes after yesterday's bad news for Railtrack employees, who were given shares at flotation and who have seen valuable nest eggs slump in value over the last few days.

Updated: 13:07 Thursday, June 07, 2001