Regulator sets National Express bid deadline

Published on Wednesday 5 August 2009 21:43

BIDDERS for troubled transport operator National Express were given a "put up or shut up" order by the UK takeover regulator last night.

The Takeover Panel gave the Cosmen family, CVC and rival Stagecoach a deadline of 11 September to make a bid for the rail and bus group.

The Spanish Cosmen family owns 18.6 per cent of National Express. Last month it made an all-cash proposal for the group, led by National Express deputy chairman Jorge Cosmen, in conjunction with the private equity group CVC.

Perth-based Stagecoach then stepped into the fray by saying it was in talks with the Cosmen consortium about taking parts of National Express if a bid was successful, while also considering an approach of its own.

A spokesman for National Express, which insists it has a future as an independent company, said it welcomed the new deadline. "The board continues to seek clarity from the consortium about a possible offer," he said. "The group is working on a range of measures to strengthen both the operations and balance sheet." he added.

The firm, which also runs bus operations in Spain and North America, has become a takeover candidate after amassing debt of close to 1 billion, giving up its flagship UK rail franchise and announcing the departure of its chief executive. It said last week it had cut its debt by 200 million by scrapping the half-year dividend.

A Stagecoach spokesman did not wish to comment, but he did confirm that the company's interest in National Express remained unchanged.