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National Express turns down bid | National Express turns down bid |
(41 minutes later) | |
Rail and bus operator FirstGroup has said it has had a takeover bid for rival National Express rejected. | |
But FirstGroup said it continued to believe there was "significant industrial and commercial logic" in a combination of the two companies. | |
National Express said it was focusing on its own initiatives. | National Express said it was focusing on its own initiatives. |
Weekend reports said that talks between National Express and the government over the future of the East Coast rail franchise had stalled. | Weekend reports said that talks between National Express and the government over the future of the East Coast rail franchise had stalled. |
In a statement, National Express said: "At the present time, the board is focused on implementing a number of initiatives to strengthen the Group and does not consider it appropriate to enter into discussions with FirstGroup." | |
Slow growth | |
National Express is contracted to pay the government £1.4bn to run the East Coast Mainline, which runs between Edinburgh and London, until 2015. | National Express is contracted to pay the government £1.4bn to run the East Coast Mainline, which runs between Edinburgh and London, until 2015. |
But sales at the franchise grew by just 0.3% in the first three months of 2009, compared with 9% over the whole of last year. | |
Cuts have been made in dividend payouts and capital spending while 750 jobs have been lost. | |
Last month, it started charging passengers for reserving a seat on its East Coast and East Anglia franchises. | |
The firm is currently trying to reduce a debt pile of about £1.2bn. | The firm is currently trying to reduce a debt pile of about £1.2bn. |
National Express is due to release a trading update on Wednesday. | National Express is due to release a trading update on Wednesday. |
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