National Express pulls plug on Stagecoach deal
Beleaguered transport group National Express yesterday pulled the plug on a potential merger with Stagecoach citing possible competition issues and a delay in completing a deal. As a consequence, the company is now set to push ahead with a fundraising before the end of the year although there is significant doubt as to whether investors are supportive of the current board and set up of the company.
The need to push ahead with the deal before Christmas is paramount because the company faces a further £5 million penalty in interest payments on its mounting £1.2 billion debt pile. The move has shocked Stagecoach which had been waiting to receive clearance to look at National Express's books ahead of a potential merger. Due to complicated takeover and merger rules, Stagecoach was only allowed to contemplate a merger after being "invited" by the National Express board to talk about a potential deal.
As the company initially ruled out a potential deal with National Express in September, a six-month bar is now in place during which time the company cannot instigate a takeover or merger with National Express unless asked to do so by the company. This is yet another blow for National Express shareholders and the future is somewhat clouded, at least in the short term.
Share this..
Related stories
Scottish businesses find renewed optimism
A survey by the Clydesdale and Yorkshire Banks has today cast a very different light on the Scottish economy to that which has been portrayed in the recent financial press. The survey confirms that 56% of Scottish businesses expect to grow over the next 12 months with just 10% expecting a reduction in business levels. This would seem to be at direct odds with recent comments about the Scottish eco...
Read MoreA good salary can ease the step onto the property ladder
A good salary can ease the step onto the property ladderWith reports indicating that salaries are predicted to rise beyond inflation this April, a survey has shown that many first time buyers will rely on this money to get onto the property ladder.According to a survey by the Homebuyer Show, the majority - 39 per cent - of first time buyers said that they were most likely to use this increase in i...
Read MoreWhy has the EU Commission become so involved in UK banking sector?
After news that the EU Commission will be forcing Royal Bank of Scotland to downsize its operations, reduce its insurance division and treble its exposure to the asset protection scheme, many are now wondering why the EU commission is so heavily involved in the UK banking sector?
The problem is that the UK government, and all other EU members, effectively signed over control and reg...
Is the EU capable of bailing out troubled states?
The European Union is today under growing pressure with regards to problems in Greece, Spain and Portugal which are likely to see significant financial assistance required in the short to medium term. There are also fears that problems in these three countries could well spread to other areas of the EU and stretch the financial capabilities of the union's member states. The EU was fairly quick...
Read MoreInflation fears subside
Inflation in Britain fell back in April after hitting a ten-year high in the previous month, government figures have shown.The Office for National Statistics (ONS) said that consumer price index (CPI) inflation last month was 2.8 per cent, compared to 3.1 per cent in March.March's figure led to Bank of England governor Mervyn King being compelled to write to chancellor Gordon Brown explaining why...
Read More