Post by Jack on Apr 24, 2009 13:11:19 GMT 1
Taken from The Telegraph.
www.telegraph.co.uk/finance/markets/marketreport/5155326/National-Express-revs-up-on-merger-talk.html
Sources close to the situation noted rumours that Stagecoach is considering a merger with National Express, possibly as part of a consortium.
The chatter was that Stagecoach could team up with the Spanish Cosmen family, which already owns a near 20pc stake in National Express, to acquire and break up the business.
Sector analysts, however, were quick to dismiss the tale, arguing such a deal is "highly unlikely".
National Express has seen its shares fall by about 48pc since the beginning of the year on fears that the highly-indebted company will be hit hard by the recession and may have to carry out a rights issue in late 2009.
Although National Express perked up 6½ to 265p, traders were also doubtful of the bid story. They attributed the company's recent gains to short covering. Stagecoach also gained 4 to 135½p.
www.telegraph.co.uk/finance/markets/marketreport/5155326/National-Express-revs-up-on-merger-talk.html
Sources close to the situation noted rumours that Stagecoach is considering a merger with National Express, possibly as part of a consortium.
The chatter was that Stagecoach could team up with the Spanish Cosmen family, which already owns a near 20pc stake in National Express, to acquire and break up the business.
Sector analysts, however, were quick to dismiss the tale, arguing such a deal is "highly unlikely".
National Express has seen its shares fall by about 48pc since the beginning of the year on fears that the highly-indebted company will be hit hard by the recession and may have to carry out a rights issue in late 2009.
Although National Express perked up 6½ to 265p, traders were also doubtful of the bid story. They attributed the company's recent gains to short covering. Stagecoach also gained 4 to 135½p.