National Express board likely to endorse CVC-Cosmen bid
11 Sep 2009
UK transport operator National Express Group Plc, is moving closer to the latest takeover bid put forth by the Spanish-led CVC-Cosmen consortium, after rejecting its previous two offers on the grounds that they undervalued the company and its prospects.
London-based National Express, one of the world's largest transport providers with operations in UK, North America and Spain, revealed through a statement issued yesterday that the company's independent board is discussing ''certain aspects'' of the consortium's final proposal.
It is believed that the issues relate to the due diligence process and financing of the deal.
The bidding consortium comprises 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.
Last week, the consortium had raised its bid for National Express to 500 pence a share amounting to approximately £765 million, from the previous 450 pence or around £700 million, stating that its latest offer is the final one, which would be withdrawn if not accepted by the board of National Express (See: CVC-Cosmen consortium sweetens National Express offer).
The consortium revealed that it had struck a side deal with National Express's rival Stagecoach to divest the UK bus and rail businesses of the ailing transporter.