CVC-Cosmen consortium sweetens National Express offer
05 Sep 2009
CVC-Cosmen consortium bidding for UK's struggling National Express Group plc, one of the world's largest transport providers with operations in UK, North America and Spain, has raised its offer to around £765 million ($1.25 billion) from the earlier £700 million ($1.1 billion).
National Express said in a statement that it received a proposal from the consortium to acquire the entire issued and to be issued share capital of the Group for 500 pence per share in cash, and the Board is evaluating the consortium's proposal.
The earlier offer that was for 450 pence a share was rejected last week by National Express on the grounds that it undervalued the company and its prospects. (See: National Express rejects CVC-Cosmen takeover bid)
The bidding consortium comprised CVC Capital Partners, one of the world's largest private equity firms and Spain's Cosmen family, the largest shareholder of the National Express Group plc, holding 18.6 per cent stake.
Also, the consortium dropped some of its earlier pre-conditions including the retention of the Group's East Anglia and c2c rail franchises, as it struck a side-deal with National Express's rival Stagecoach, to divest the UK bus and rail business of the ailing transporter for an undisclosed sum.
Separately, Stagecoach which had been in talks with UK's Department of Transport said that the new owner of National Express would not be required to give up the profit making East Anglia and c2c franchises as a penalty for surrendering the loss making East Coast Main Line contract.
