Page last updated at 06:41 GMT, Thursday, 29 October 2009

National Express ends bid talks

National Express train
National Express said its annual profits will be below expectations

National Express has said that all talks of a merger with rival Stagecoach have now ended.

"It is unlikely that a combination with Stagecoach could be successfully executed in 2009, even if appropriate terms could be agreed," it said.

Stagecoach had approached the train operator about a tie-up with the East Coast Main Line operator this month.

Stagecoach said it was "extremely disappointed" that National Express decided against its offer.

'Compelling proposition'

"Stagecoach believed that there was a compelling strategic and financial proposition for a combination which would have represented a unique opportunity to deliver incremental value for both sets of shareholders," it said.

Stagecoach, which operates South West Trains and East Midlands Trains, had made a new all-share offer for its rival.

National Express said that it intended to raise funds by issuing more shares "as soon as possible".

It warned last week that its full-year profits are set to fall below expectations because of higher interest costs and lower profits at its North American business.

Earlier this month, a group led by its largest shareholder, Spain's Cosmen family, withdrew a £765m takeover offer.

Print Sponsor

National Express warns on profits
22 Oct 09 |  Business
Rival renews National Express bid
19 Oct 09 |  Business
Bid failure hits National Express
16 Oct 09 |  Business
Spanish join National Express bid
24 Jul 09 |  Business
New suitor for National Express
23 Jul 09 |  Business
First abandons rival takeover bid
22 Jul 09 |  Scotland
National Express turns down bid
29 Jun 09 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific