Page last updated at 11:03 GMT, Wednesday, 11 November 2009

Transport firm in 360m cash call

National Express train
The government will take over the East Coast rail route this week

Bus and rail operator National Express has said it plans to raise £360m from investors in order to cut its debts.

National Express said the rights issue would "significantly" cut its debt burden, which stood at £1.1bn at the end of September.

Last month, the company ended talks about a possible merger with rival transport firm Stagecoach.

The firm is due to hand back the running of the East Coast rail route to the government at the end of the week.

The government said in July that it would take over the route, which runs trains between London and Edinburgh, after ministers refused National Express's requests for its contract to be renegotiated.

The government has also threatened to take back National Express's other rail franchises - East Anglia and c2c.

However, National Express reiterated that it had taken legal advice, and said it considered it had grounds to challenge any attempt by the government to take these franchises away from it.



Print Sponsor


SEE ALSO
Date named for rail line takeover
05 Nov 09 |  Business
National Express 'lacks strategy'
30 Oct 09 |  Business
National Express ends bid talks
29 Oct 09 |  Business
National Express warns on profits
22 Oct 09 |  Business
Route loss hits National Express
30 Jul 09 |  Business
East Coast rail to be state-run
01 Jul 09 |  Business

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



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

BBC navigation

BBC © 2013 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