MERGERS * UK - National Express rejects FirstGroup bid
Company says talks with FirstGroup are inappropriate as it struggles with £1.2bn debt and east coast rail franchise
London,UK -The Guardian News/Finance Yard -June 29, 2009: -- FirstGroup has been warned it must renegotiate Britain’s most expensive rail franchise in order to secure investor approval for a takeover of National Express. Analysts said the £1.4bn National Express East Coast contract would have to be rewritten if FirstGroup were to pull off a deal... National Express confirmed that it had rebuffed an approach from its rival to create a powerful force in the public transport industry through an all-share transaction. The company said it “does not consider it appropriate” to enter into talks with FirstGroup while it attempts to whittle down a £1.2bn debt burden and deal with its east coast franchise, which must pay the government £1.4bn by 2015. FirstGroup, owner of four franchises, including First Great Western, said it believed there was “significant industrial and commercial logic” in a deal... (Picture from freefoto: First Great Western Class 180 Adelante train--Gloucester)Labels: mergers and adquisitions
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