National Express plan hits buffers

Jul 22 2009

The UK's biggest transport firm, FirstGroup, has said it would be "inappropriate" to consider a formal takeover bid for struggling rival National Express because of uncertainties around the business.

First said the decision by National Express earlier this month to walk away from its loss-making East Coast rail franchise and subsequent Department for Transport (DfT) comments on the future of its other train deals had created "considerable uncertainty" around the business.

In a statement the firm said: "The board of FirstGroup has considered its position in light of these uncertainties and now believes it would be inappropriate to consider a formal offer at this time."

Aberdeen-based First said it had been given a "put up or shut up" deadline from its rival on the merger proposals.