How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
...you can learn Spanish at a variety of locations across Spain, online or residential and day courses in Spain?
Regardless of your standard, and whatever level you wish to reach Don Quijote has a program to suit your needs!
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- Mr Grumpy v The Spanish Lifestyle
- Daily Brief - Friday 6 December 2013
- Join us for FREE IHT advice in Murcia & Costa Calida
- Madrid : Spain's Fashion Centre
- Gibraltar Relations
- Pensioners 'misled' by Co-op Bank
- UK Inflation no problem for Governor Carney
- Retiro Park : Madrid
- Spanish Tourism Stats Confusion
- Wincham announce opening of Marbella office
- Unauthorised Financial Advisers in Spain : UPDATE
- Community Insurance in Spain
- Calendar Girls
- Own a Property in Spain ? Then you need to read the following
- Considerations when Insuring your Boat in Spain
National Express ends merger talks with Stagecoach
Bus and rail operator National Express Group walked away from a possible merger with rival Stagecoach and will now focus on raising cash by selling shares to cut its debts.
Shares in National Express, which had risen a third in the past quarter on persistent takeover speculation, tumbled 9.7 percent to 328.8 pence by 8:55 a.m. on Thursday, while Stagecoach shares rose 2.1 percent at 148.3p.
National Express, which was approached by Stagecoach about a possible merger earlier this month, knocked back the possibility of a an all-share merger because of fears a deal would not be successfully executed by Christmas, when it faces 5 million pounds in penalty interest payments on its 977 million pounds debt pile.
"The board has concluded it is unlikely that a combination with Stagecoach could be successfully executed in 2009, even if appropriate terms could be agreed" National Express said in a statement. "All discussions with Stagecoach have now ceased."
The potential deal was valued at up to 2 billion pounds by analysts.
Stagecoach said it was "extremely disappointed" that National Express had chosen not to pursue proposals it had submitted.
"Stagecoach believed that there was a compelling strategic and financial proposition for a combination which would have represented a unique opportunity to deliver incremental value for both sets of shareholders" it said.
FOCUS ON FUNDRAISING
National Express said it would now press on with plans to raise cash by selling shares to help pay down 977 million pounds of debt as soon as possible.
"It's a perfectly sensible move to execute the rights issue first and then consider strategic options from a position of greater strength," said analyst Douglas McNeill at brokerage Astaire.
"Stagecoach have had two bites at the cherry now and I'm sure they regard National Express's assets as attractive, but I'm not sure whether they will be back with a bid anytime soon."
National Express is expected to ask shareholders for up to 400 million pounds - a move, which if successful, means its lenders will push back the maturity date of its 540 million euro debt facility from September 2010 to March 2011, allowing it to refinance its other 800 million pound credit facility.
Analysts believe a fundraising could be concluded as early as next month.
The company warned last week that its full-year profit would be below last year.
Earlier this month previous suitors, Spain's Cosmen family and private equity partner CVC Capital Partners, pulled out of a deal after spending a month studying the company's books.
Some analysts said a deal with Stagecoach could have been scuppered by regulatory hurdles.
Latest News & Stories
- Spain's El Gordo Lottery Tax Breakdown
- 3 Earthquakes in Lorca, Murcia
- Spain Appoints Cybersecurity Council
- Sale of Spain's Ciudad Real Airport Underway
- Spain expects 10'000 Bankruptcies in 2013
- Contract awarded to complete works at Castellon Airport
- Major delays with UK-Spain flights this weekend
- UK Notes "Historic Parallel" Between Ceuta, Melilla and Gibraltar
- Paramount UK in line for Gov't windfall : A Lesson for Murcia ?
- Catalonia wants to cancel licenses for at-risk drivers