Trending News

Blog Post


UK’s FirstGroup faces extra stress over EQT deal By Reuters 

© Reuters.

(Reuters) -FirstGroup’s largest investor on Monday once more requested shareholders of the London-listed transport operator to vote in opposition to the corporate’s sale of two North American bus companies, whereas proxy advisory agency Glass Lewis joined the opposition.

The $4.6 billion sale to Swedish personal fairness agency EQT (NYSE:) Infrastructure has led to a shareholder insurrection after Coast Capital, the British agency’s high investor with a 14% stake, opposed the deal on considerations that it undervalued the property.

“Until the deal phrases are materially improved upon, together with proposed use of proceeds, Coast Capital urges its fellow traders to vote in opposition to this damaging proposal,” the activist investor stated in an announcement on Monday that laid down a rebuttal to the arguments introduced by FirstGroup.

Glass Lewis additionally advisable that traders vote in opposition to the deal at a gathering set for Thursday.

“We are inclined to agree with Coast when it says any sale or carve out of those U.S. companies can be higher finished after a return to normalcy within the U.S., as a way to maximize worth,” it stated in an announcement.

250-listed FirstGroup didn’t instantly reply to a request for remark. The corporate has stated the deal adopted “a complete and aggressive course of as a way to search the very best value.”

It plans to make use of the proceeds from the deal to pay down debt, contribute to its UK pension schemes and return cash to shareholders.

The sale additionally faces opposition from Schroders (LON:), FirstGroup’s second-largest shareholder with a 12% stake.

Nevertheless, it has the backing of the corporate’s third-largest shareholder, Columbia Threadneedle Investments.


Disclaimer: Fusion Media wish to remind you that the info contained on this web site is just not essentially real-time nor correct. All CFDs (shares, indexes, futures) and Foreign exchange costs aren’t supplied by exchanges however relatively by market makers, and so costs might not be correct and will differ from the precise market value, which means costs are indicative and never applicable for buying and selling functions. Due to this fact Fusion Media doesn`t bear any duty for any buying and selling losses you would possibly incur on account of utilizing this knowledge.

Fusion Media or anybody concerned with Fusion Media is not going to settle for any legal responsibility for loss or injury on account of reliance on the data together with knowledge, quotes, charts and purchase/promote alerts contained inside this web site. Please be totally knowledgeable concerning the dangers and prices related to buying and selling the monetary markets, it is among the riskiest funding kinds attainable.

Supply hyperlink

Related posts

Leave a Reply

Required fields are marked *