Posted 19th October 2009 | 1 Comment
Stagecoach makes new overtures to National Express
National Express has been running c2c since 2000 when it took over the original winner of the franchise, Prism Rail
Stagecoach Group has made a new approach to National Express, once again raising the possibility that it could be poised to take over c2c and East Anglia as part of a wider deal. National Express Group shares fell sharply on Friday after the Spanish Cosmen family withdrew from negotiations to take over the Group, but Stagecoach has now confirmed that it has since suggested a merger with NXG, saying it was invited to do so by the NXG Board.
A report in the Sunday Telegraph valued the possible value of such a deal at £1.65bn, but National Express has described the approach from Stagecoach as a ‘highly preliminary proposal’.
Had the Cosmen family confirmed its offer, which it had been proposing in partnership with an equity group, Stagecoach was expected to acquire the British operations of National Express with the exception of the long-distance coach services.
NXG also said that the Stagecoach proposal would leave NXG shareholders owning no more than 40% of the combined group. It would be considering the Stagecoach plan, but continue to explore equity fund-raising, ‘in order to see whether the Stagecoach proposal offers greater value and certainty to National Express shareholders’.
National Express interests in Britain include the Midland Metro tram concession as well as the c2c and East Anglia franchises. However, the East Coast franchise is still expected to return to the control of the Department for Transport after NXG warned earlier this year that a default was imminent. ATOC has told Railnews that it expects the transfer of East Coast to take place in December.
The City will now be watching for an interim management statement from National Express, which is due on Thursday.
Reader Comments:
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Andrew Gwilt, Wickford, England
The Class 321's that are used on the East Anglia mainlines only go as far as Ipswich, Harwich, Clacton-on-Sea and sometimes Norwich. The class 360/1's desiro are much capable of doing the same job/service as the Class 321's do operate because they are reliable, so does the Class 360/1 desiro that are reliable. The Class 360/1 desiro only operates from London Liverpool Street to Harwich, Clacton and Ipswich not other lines that the 360/1 may operate on including the Shenfield-Southend Victoria line, Braintree-Witham line, Shenfield/Wickford-Southminster line and Colchester-Walton via Colchester Town line. I wish that the class 360/1 desiro were used on most routes in Essex and as far as Ipswich. The other plan is to build a new branch line from Witham and Chelmsford to Maldon because Maldon is isolated from the main line and needs to have a branch line for trains from Braintree/Witham and London Liverpool Street/Chelmsford to Maldon by 2015 if the new branch line is proposed by Network Rail, National Express LTD, National Express East Anglia, Chelmsford Borough Council, Maldon District Council and Essex County Council . The other thing is since "One" Railway did change to National Express East Anglia, the class 360/1 were in a horrible state and most of the class 360/1 desiro are applied on temporary liveries and some have new national express east anglia liveries. Please replace the Class 321's for the best reliable Class 360/1 desiro. Many thanks.