Millennium Dome decision delayed

Features like the Body Zone failed to attract the crowds

LONDON, England (Reuters) -- The government said it was taking more time on Friday to decide the future of the struggling Millennium Dome, although only one bidder remains for the site.

A government spokesman said discussions were continuing with Legacy Plc, which wants to turn the great white tent on the outskirts of London into a high-tech business park once the Dome's millennium exhibition shuts at the end of this year.

Legacy had pressed for a decision on its 125 million pound ($178 million) bid this week but it seemed unlikely to get it.

"Discussions are ongoing with Legacy. We've now received a proposal from them which may allow us to move them on to preferred bidder status," said a spokesman for Prime Minister Tony Blair.

Deputy Prime Minister John Prescott reviewed Legacy's proposals on Thursday at a meeting with Lord Falconer, the minister for the Dome, and other officials.

"There will be further discussions...in the hours and days to come," Blair's spokesman said. A Legacy spokesman could not be reached for comment.

Legacy wants to turn the Dome into a high-tech business park

Blair's government had hoped the Dome would become an icon for Cool Britannia when it opened on January 1, but instead it has been an embarrassing flop that failed to attract enough visitors and sucked up ever more national lottery money.

Originally there were dozens of bidders to take over the Dome once it closes its widely-panned exhibits, called "zones."

The bidders had been shortlisted to Legacy and a consortium led by the Japanese bank Nomura.

Nomura won the deal and planned to buy the Dome for 105 million pounds but pulled out last month amid continued questions about Dome finances.

If Legacy gets the Dome it would dismantle the millennium exhibition and invite in companies involved in technology and communications to share offices, cafes and leisure facilities in a "Knowledge City" under the huge weatherproof roof.

Britain's spending watchdog severely criticised the Dome last week, saying it had overly ambitious visitor targets and weak financial management.

It had budgeted for 758 million pounds, but as visitors failed to materialise, the Dome lapped up another 179 million pounds in lottery grants this year.

The ambitious project was launched by the previous Conservative government but Blair enthusiastically embraced the idea when he came to power in 1997.

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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The Millennium Experience

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