Security firm G4S has failed to win any of the prison contracts it was bidding for, the Ministry of Justice said.
Competitions to run Northumberland prison and the South Yorkshire group of jails - Lindholme, Hatfield and Moorland - will move to the final stage without G4S in the running.
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Police said the child, who was without a driving licence, was trying to make his way 2,500 miles from the east coast to Perth.