(Alliance News) - National Express Group PLC and Stagecoach Group PLC said Monday they have agreed to extend their merger negotiations into next month.
The deadline for National Express to make a takeover offer for fellow transport operator Stagecoach has been moved back to November 16.
"Discussions between the parties and reciprocal due diligence remain ongoing, and there can be no certainty that an offer will be made" the two companies said in parallel statements released before the London market open.
The talks to combine two of the UK's largest public transport providers were first announced in late September.
FTSE 250-constituent National Express is the bigger of the two, with a GBP1.4 billion market capitalisation, while Stagecoach has a value of about GBP450 million. National Express is based in Birmingham, while Stagecoach has its headquarters in Perth, Scotland.
National Express shares were down 1.9% at 231.80 pence early Monday in London, while Stagecoach shares were off 2.0% at 80.60p.
By Tom Waite; thomaslwaite@alliancenews.com
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