(Alliance News) - Rotala PLC said it applied for a judicial review of Manchester Mayor Andy Burnham's plan for the local government to take control of bus services, which he approved on Thursday.
The West Midlands-based bus operator said it had already sought a review of the Greater Manchester Combined Authority's consultations into the plan and the process by which they were carried out. The court proceedings will take place in late May.
Shares fell 19% to 27.00 pence in London. On Thursday, they had fallen by 1.5%.
The franchising system will give the local government in Manchester the power to set fares, timetables and routes. Rival operator Stagecoach PLC also applied for a judicial review, saying yesterday that Burnham should wait for the court's decision.
Rotala, which operates services in the West Midlands, northwest England and Heathrow Airport, said it is "not appropriate" to comment further on Burnham's decision "given the ongoing legal proceedings".
By Ivan Edwards; ivanedwards@alliancenews.com
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