First it was FirstGroup, owner of First Student, that inquired about purchasing competitor National Express Group plc. Now, the largest shareholder of National Express and Stagecoach are attempting takeovers.
National Express Group, owns National Express Corporation, the company’s North America subsidiary that operates school transportation companies Durham School Services in the United States and Stock Transportation in Canada. A National Express Corporation spokesperson confirmed over that the Cosmen family of Spain, the largest shareholder in National Express Group with an 18.5 percent stake, was bidding to take over the entire company along with private equity firm CVC. According to the Times of London, analysts have deemed likely a deal that could push the purchase price to more than 400 pence a share, or $6.59 per share. National Express was valued at around £529 million ($868 million USD).
Then, over the weekend, the paper reported that Stagecoach and another private equity firm were circling the waters.
The company has been a hot commodity this year in the eyes of prospective new owners amid financial troubles in the UK that is forcing out its chief executive. Around the time of the FirstGroup inquired last month about purchasing National Express, CEO Richard Bowker announced he would leave in August after the company drew the ire of UK transport secretary Lord Adonis and withdrawing the country’s east coast rail market.
National Express is dealing with lenders regarding accumulated debt, and analysts say that foregoing expensive rail contracts free up cash flow that make the company more attractive.
