Rail operator National Express bid deadline extended

The deadline for the Cosmen-led consortium to make a formal offer for bus and rail operator National Express has been extended for a second time, the Takeover Panel said yesterday.

The Takeover Panel said the deadline had been extended by three weeks until 1600 GMT on October 16 and no extension to the revised deadline would be granted.

An extended deadline of 5 p.m. yesterday had been set for Spain's Cosmen family and private equity partner CVC Capital Partners to make a formal 500 pence-a-share offer for the transport group or walk away.

Reuters reported on Tuesday that the consortium led by Cosmen, which is the biggest shareholder in National Express with an 18.5 per cent stake, wanted the deadline extended so due diligence could be completed.

Shares in National Express, which have risen by more than 60 per cent since it rejected a takeover offer from FirstGroup (FGP.L) at the end of June, were 0.13 per cent up at 477 pence by 11.07 a.m., valuing the group at around £730 million.

National Express became a takeover target earlier this year after struggling to lower a debt pile of almost £1 billion and announcing it would walk away from its flagship East Coast UK rail franchise due to mounting losses.

The Cosmen/CVC consortium improved its offer earlier in September after a 450 pence per share approach was rejected and also struck a side deal to sell National Express' UK bus and rail operations to rival Stagecoach.