Stagecoach joins bidders for National Express

LONDON -- Stagecoach Group PLC said Monday it is in exclusive talks with the potential buyers of coach operator National Express PLC over a possible breakup of the struggling company.

Private equity group CVC Capital Partners has joined with a major National Express shareholder, the Cosmen family of Spain, in making a bid to take over the bus and rail company.
Scottish-based Stagecoach, Britain's biggest rail franchise operator, said it was interested in "certain businesses and assets" of National Express if the CVC-Cosmen bid succeeds.

However, it added that it was still considering "all other options," indicating it may make an independent bid for the company.

National Express shares jumped 5.2 percent to 364.5 pence ($6.01) on the London Stock Exchange. Stagecoach shares, meanwhile, fell 1.8 percent to 135 pence.

FirstGroup, the country's biggest transport company, dropped out of the running for National Express, Britain's biggest long-distance coach operator, last week.
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FirstGroup, which had wanted to create a competitive company across Europe and North America, cited warnings from the government that National Express is likely to be forced to lose its three rail franchises.

Earlier this month, National Express was forced to walk away from its loss-making East Coast rail deal after failing to re-negotiate the franchise with the government.

It had originally been contracted to run the line until 2015, but the business lost 20 million pounds in the first half of this year as customer growth stalled amid the recession.

The company, which was also warned it could lose its two other rail franchises in southern England, is laboring under a 1.2 billion pound debt mountain. link....