Will National Express pay the price for rail franchise debacle
After handing back the East Coast rail franchise it looks as though National Express's days of independence could be numbered. It has been revealed that a wealthy Spanish family and private equity group CVC capital partners have teamed up to make an offer for the group which is believed to be in the region of £500 million. However, the value of National Express on the stock market is currently around £530 million amid rumours that the management is trying to obtain a higher price.
The current share price is £3.45 and many believe the company could finally go for as much as £4 which would value the group at around £620 million. The company has been in the news for all the wrong reasons over the last few months and aside from the East Coast franchise debacle we have seen chief executive Richard Bowker leave the ship and the group amass a £1.2 billion debt mountain.
There had been rumours that competitor First Group could make an offer for National Express although nothing has yet materialised. If you are looking to invest in National Express, or any other company on the stock market, it is vital that you take independent financial advice before doing so.
Share this..
Related stories
Hedge funds continue to hit the buffers as confidence disappears
In light of the Madoff affair we are seeing a number of worldwide hedge funds come under serious pressure as investors run for the hills. While hedge funds are often associated with high risk investment this is not always the case but they all seem to be tarred with the same brush and the sector as a whole is suffering from substantial withdrawal demands and very low confidence. Indeed, many now b...
Read MoreAlliance And Leicester Hits Rock Bottom
For those who were not sure whether the Alliance And Leicester takeover by Santander was the right move, today's announcement that profits have been wiped out with a £209 million hit may help to explain the reasons. The board of the Alliance and Leicester has been on the receiving end of some severe criticism for their handling of the affair but today's news backs up their case for a stronger pa...
Read MoreGovernment under pressure to review inflation rules for pension schemes
The UK government is today under pressure to review the proposed change in final salary pension scheme calculations which would allow scheme trustees to use the consumer price index as opposed to the retail price index. While both are measurements of the UK economy and the cost of living, the consumer price index is currently running at 3.2% while the retail price index is running at 5%. While in...
Read MoreBanks have a "responsibility" to students
Banks have a "responsibility" not to lend more money to students than they can afford to pay back, a spokesperson for HSBC has said. Many banks offer student accounts with overdraft facilities of around £1,500, student credit cards with a credit limit of about £1000 and low-rate loan facilities, and it is not unusual for students to graduate with debts of over £10,000.James Thorpe, a spokespers...
Read MoreAre high street banks morally obliged to assist rural communities?
As more and more of the U.K.'s big banks decide to close branches up and down the country, there is growing concern that many rural areas are being left high and dry with banks ditching their moral obligation to assist local economies. This is not a new phenomenon but the onset of the worldwide recession has focused minds more upon cost-cutting than customer service and we are set to see more and...
Read More