Amidst claims by some prominent fund managers of a too steep share prices for its public float, officials of QR National maintained that the prices were based on careful analysis by the Queensland government that have so far attracted considerable attention from investors.

QR National chairman John Prescott said on Tuesday that the threat of non-participation from a number of influential fund managers was a cause for alarm but he remained confident that the public sale has already generated significant interest that ran counter "with some of the concerns being expressed about the price."

While he acknowledged that some questions were raised on QR National's share price offerings of $2.50 to $3.00, the price range would not be adjusted unless the Queensland government warrants it, which he stressed is very unlikely at this stage.

Mr Prescott said that the non-participation declaration made by well-known fund managers in the QR National float is not a grave concern for the company now as he added that the group's comparison of QR's share prices to that of Myer's was baseless.

He argued that government floats for the past 20 years in Australia have so far returned remarkable numbers, which he stressed were very "distinguishable from other retail floats."

Also, Mr Prescott dismissed accusations coming from many analysts that the QR National public listing is being undertaken in a very unethical manner, wherein retail investors were being 'required to submit a blank cheque' and then wait for institutional investors to possibly rack up the price.

The QR National boss maintained that the float business has conducted in the same manner for several years now and the practice has been accepted by the market as he stressed that reforms on the way companies were being floated would not be required at this time.

Furthermore, Mr Prescott observed that people are better informed now due to the availability of better information that are readily accessible, such as the of offer documents, which "have probably improved in quality and attention to detail, and hopefully each float learns from the previous one in satisfying what investors are looking for."