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FirstGroup plans East Coast rail franchise raid

Published on 30 Jun 2009 under category: legal

Transport firm FirstGroup has made a bid to take over the operations of rival National Express, claiming it is well-placed to tackle problems on the East Coast rail franchise.

National Express currently operates the franchise but FirstGroup is keen to get its hands on the line, which has been blighted with a variety of problems over recent months.

FirstGroup made a nil-premium offer to National Express which the company quickly rejected, but analysts believe this will not be the last of FirstGroup's attempts to woo National Express and gain control of the East Coast franchise.

In a statement following the rejected offer, FirstGroup underlined its commitment to the pursuit, saying it "continues to believe there is significant industrial and commercial logic in a combination of the two companies".

National Express has been awarded the franchise by the department of transport, despite continued problems in upgrading the line as well as an unhealthy set of balance books at the company over recent months.