Despite the speculation from news outlets around the world, FirstGroup has not offered to buyout its close competitor National Express, yet.
“FirstGroup notes the press speculation in relation to a potential offer for National Express and confirms that it has made a preliminary approach to the Board of National Express with a view to entering into discussions about a possible offer for National Express,” explained Stuart Bugg, corporate communications manager for FirstGroup, in a release sent to School Transportation News.
FirstGroup’s approach was based on the idea that a merger between the two transportation leaders would “maximize the potential of both companies” and that “there was significant industrial and commercial logic in a combination.” Any offer would be in the form of FirstGroup shares.
That initial approach, which was rejected by the board of National Express, was made on June 19. Two days earlier, National Express was able to hammer out a deal with its banks to give the company an additional six months to cut its £1.2 billion pounds of debt (approximately $1.9 billion).
“This announcement does not constitute an announcement of a firm intention to make an offer,” stated the release.
