(Adds with National Express statement)
LONDON, Sept 21 (Reuters) - British transport company
National Express is in talks to acquire rival operator
Stagecoach Group in an all-share deal, which would
result in cost savings and provide new growth opportunities for
the companies.
National Express has bus and coach operations in Spain and
the Britain, runs school buses in the United States, and has a
German rail contract, while Stagecoach is solely focused on
Britain, where it is the biggest bus and coach operator.
Under the terms of the potential takeover, Stagecoach
shareholders would receive 0.36 new National Express shares for
each Stagecoach share, giving them a 25% stake in the merged
group.
That would value Stagecoach at about 445 million pounds
($609 million), representing an 18% premium on the closing price
of its shares on Monday.
The companies said that discussions and due diligence
remained ongoing and there could be no certainty that a formal
offer would be made.
Should a deal go ahead, Stagecoach's chairman Ray O'Toole, a
former chief operating officer at National Express, would become
chair of the combined group, while National Express chief
executive Ignacio Garat would continue as CEO of the merged
entity.
($1 = 0.7310 pounds)
(Reporting by Sarah Young; Editing by Kate Holton and Michael
Holden)
