Latest Rail News

09.05.18

FirstGroup shares crash as Apollo walks away from merger without deal

A potential deal between US private equity firm Apollo and British rail and bus operator FirstGroup has collapsed after two approaches were turned down by the UK transport giant.

FirstGroup shares fell by more than 10% on the London Stock Exchange yesterday when the news broke that the Aberdeen-based firm had failed to reach a deal with the equity firm.

Apollo had until 5pm today to make an offer or walk away from a deal, which would take control of FirstGroup-owned American Greyhound buses and UK rail franchises such as TransPennine Express, South Western Railway, Great Western Railway and First Hull Trains – as well as potentially including the new West Coast Partnership in the future.

But it has now been reported that the equity firm will not make a further bid, stating that “neither it nor the Apollo Funds intends to make an offer to acquire FirstGroup.”

In a statement, the FirstGroup board said: “In recent weeks the board of FirstGroup received two preliminary and highly conditional indicative proposals from Apollo relating to a possible cash offer for the entire issued and to be issued ordinary share capital of FirstGroup.”

But the transport operator explained that the board unanimously rejected the proposals, arguing that they “fundamentally undervalued the company.”

FirstGroup, whose profits were down 26% in the six months up to September in 2017, experienced a 25% increase in its stocks up in the days after rumours of the takeover – but since then stocks have tumbled.

It is set to publish its full-year results on 31 May.

Apollo has been approached for comment.

Enjoying RTM? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

 

related

rail technology magazine tv

more videos >

latest rail news

Former Aston Villa chair announced as WMCA HS2 growth delivery chair

21/09/2018Former Aston Villa chair announced as WMCA HS2 growth delivery chair

Steve Hollis has been announced as the new chair of the West Midlands Combined Authority (WMCA) HS2 growth delivery board. A former chairman... more >
Major northern station upgrade reaches phase two of redevelopment

21/09/2018Major northern station upgrade reaches phase two of redevelopment

Plans to improve the Doncaster Railway Station have reached phase two of the redevelopment process. Work has begun on the plans, developed b... more >
Northern unveils new digital train for roll-out at end of year

21/09/2018Northern unveils new digital train for roll-out at end of year

Northern has unveiled its refurbished Class 158 digital train for passengers, ahead of the new fleet’s complete roll-out by the end of the ... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

rail industry focus

View all News

interviews

Going global: an interview with Network Rail’s Leevan Finney

29/08/2018Going global: an interview with Network Rail’s Leevan Finney

RTM’s Jack Donnelly sat down with one of the leading minds behind Network Rail’s most advanced and innovative rail maintenance techno... more >
Transforming travel in the north west

06/02/2018Transforming travel in the north west

RTM’s Josh Mines talks to Robin Davis, head of new trains at TransPennine Express (TPE), about the huge rolling stock change journey the co... more >
Thameslink: Nearing the end of the line

23/01/2018Thameslink: Nearing the end of the line

RTM’s Josh Mines catches up with Mark Somers, project director for Thameslink, on how the final stages of the programme are progressing and... more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. ... more > more last word articles >

'the sleepers' daily blog

The East Coast franchise report tells us what we already knew: it was a bid set up to fail

18/09/2018The East Coast franchise report tells us what we already knew: it was a bid set up to fail

RTM's Jack Donnelly assesses what the Transport Committee's latest report on the VTEC franchise means for the industry as a whole “Eve... more >
read more blog posts from 'the sleeper' >

comment

Northern Powerhouse Rail: The need for change

18/09/2018Northern Powerhouse Rail: The need for change

Northern Powerhouse Rail (NPR) will be transformational for the north – it will change the way people live, work, and play. It will rebalan... more >
Innovation through people and technology

18/09/2018Innovation through people and technology

Ian Prosser, HM chief inspector of railways and director of railway safety at the ORR, picks out the key industry challenges to focus on based on... more >
Why we all must mind the gap

18/09/2018Why we all must mind the gap

Clair Mowbray, chief executive of the National College for High Speed Rail (NCHSR), explains how we can all ensure the UK’s next generation... more >
3D printing: from virtual to real

11/09/20183D printing: from virtual to real

Like so many other technological advancements, 3D printing has moved from being the stuff of science fiction, through niche industrial applicatio... more >