Stagecoach considers a late bid for National Express
After National Express turndown a potential offer for the business from CVC Capital Partners it really is crisis point for the UK travel company. It appears that CVC Capital Partners offered in the region of £4.50 a share but this was turned down by the directors of National Express even though the business has accrued massive debts over the last few years.
While there has been no formal confirmation that the CVC Capital Partners team will be walking away from National Express and abandoning their attempt to take over the business, many people believe that next week will see a formal announcement. If the bid collapses, and Stagecoach does not enter negotiations in the short term, it is highly likely that National Express will press ahead with a £350 million rights issue to try and reduce the company's net debt.
Stagecoach had initially been in talks with CVC Capital Partners regarding the acquisition of part of the National Express operation, if their bid had been successful, and due to this involvement the company only has until 11 September to confirm whether or not an offer will be made. This short-term uncertainty is doing National Express no favours as the operation is struggling and the UK travel company's banks are knocking at the door for answers.
Share this..
Related stories
Did The FSA Ruin The HBOS Rights Issue?
While it was all done with the right idea in mind it seems as though the Financial Services Authority (FSA) may inadvertently have ruined the £4 billion HBOS fund raising after introducing the recent short selling rules in relation to shares where a fund raising is taking place. This promoted the confirmation of large short positions in HBOS over the last few weeks and some believe that this led...
Read MoreUK authorities step in to save PFI projects
Private Financial Initiative (PFI), once the flagship of the UK government's investment policy going forward is this evening standing on the edge of a precipice. The UK authorities have been forced to inject between £1 billion and £2 billion into the PFI sector as the vast array of banks which offered funding in the early days have disappeared and withdrawn their credit lines. This has left over...
Read MoreAbbey Zero credit card returns to the market
In a move which will please many holidaymakers in the UK, the ever popular Abbey Zero credit card has returned to the market. This particular credit card has been very popular with holidaymakers in the UK as it offers fee free credit when overseas, i.e. there are no exchange rate charges. The credit card also comes with a 0% balance transfer deal which will last 12 months and free purchases for up...
Read MoreASDA Announces The 2p Banger
As more consumers struggle to find the money to cover everyday bills ASDA has stepped forward with the 2p banger!
While not necessarily the most nutritious of food the 2p banger has hit the headlines along with ASDA’s claim that it can supply a meal for a family of four for just £1.60. Whether you are in the market for a 40p meal for your family there is no doubt that the mo...
RBS chief looks to stem the flow of investor anger
Stephen Hester, the chief executive of the Royal Bank of Scotland, has this week written to the Association of British Insurers (one of the most powerful investment groups in the UK) suggesting that he will not touch his potential multi-million pound share bonus pot until after 2014 - two years later than originally announced.
While this particular move has been well received by the...