Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Bus and train group Stagecoach is considering being acquired by rival National Express in a deal that would see Stagecoach own about 25% of the combined group, the companies said on Tuesday.
Stagecoach and National Express, confirming media speculation of a proposed tie-up, said they were in talks about a possible all-share deal.
The proposed bid would see Stagecoach shareholders get 0.36 new National Express shares for each Stagecoach share.
The two companies said they believed the deal was a 'strategically compelling proposition', with the potential to realise significant growth and cost synergies.
The offer, they added, represented an 18% premium for Stagecoach investors, based on the two companies' latest closing share prices.
Stagecoach chairman Ray O'Toole would become chairman of the combined group, leveraging his prior experience across both businesses, with National Express chairman John Armitt standing down.
Jorge Cosmen would be deputy chairman, while Ignacio Garat and Chris Davies would be chief executive and chief financial officer, respectively.
'Discussions between the parties and reciprocal customary due diligence remain ongoing and there can be no certainty that any offer will be made,' the companies said.