Spanish family in bid for embattled National Express

Published on Friday 24 July 2009 21:20

SHARES in National Express leapt almost 7 per cent yesterday as Spain's wealthy Cosmen family and private equity group CVC Capital Partners confirmed they had made a joint takeover approach.

The consortium said it noted recent press speculation about the embattled transport group "and confirms that it has made an indicative proposal to acquire for cash the entire issued and to-be-issued shares of National Express".

The Cosmen family is the target's biggest shareholder with an 18.5 per cent stake and Jorge Cosmen is deputy chairman of the company.

The bid approach is believed to value National Express at about 500 million, though it is thought the British group's board want to hold out for at least 400p a share, valuing the company at nearly 620m.

Shares in National Express initially jumped 9 per cent, before closing the day up 6.7 per cent at 345.75p, giving a market value of about 530m.

A National Express spokesman said: "The board will update the market when it has something further to add." The spokesman added that, as was standard in these situations, Jorge Cosmen is not involved in any discussions on bids for the group, although he continues to be a National Express director.

The Cosmens acquired their initial 9.9 per cent stake in the debt-laden British rail-to-buses group in 2005 as part of the 262m National Express paid for Alsa, their Spanish bus business.

National Express has become a takeover target after heavy losses in its UK rail division, a 1.2 billion debt mountain and the recent abrupt departure of chief executive Richard Bowker.

The group is thought virtually certain to have to hand back its franchise for East Coast trains between Edinburgh and London King's Cross to the government before the end of the year because of trading difficulties.

Aberdeen-based FirstGroup pulled out of a possible takeover bid for National Express on Wednesday citing "uncertainties" over the business.

Analysts said last night that other potential bidders for National Express might be put off by the Cosmen's large stake.

Two mooted bidders, Perth-based Stagecoach and Go-Ahead, declined to comment. Analysts believe SNCF of France and Deutsche Bahn might also be in the frame as rival suitors.