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There is a general resentment in the USA of incomers who make a success of a business, and the US establishment (especially the local politicians) will try to make life hard. They are very happy to see ventures like Tesco's Fresh 'n Easy bite the dust. I do worry that the New York operation of Stagecoach will be nobbled all along the line. I hope that they start their dirty tricks on some of the Chinese companies who have opened in the USA, when they will meet a very different response from that of British compliance.
Yes, they did buy an operator in the USA some years ago, and sold it when it failed to perform. Can't remember the exact details, but there was much negative comment at the time. The USA has always been diffiicult for British takeovers and start-ups; First Group seem to be o.k. at the moment. I believe the trick is to have Americans front an operation and let them have some leeway. I think Sir Brian will have done his homework this time.
I gather Stagecoach is buying that part of the operation based in Texas, with a view to extending this ultimately towards California. Let's hope all goes to plan. Generally the USA does not welcome interlopers and the Trojan Horse approach has to be heavily hidden behind American front managers. The one successful venture which comes to mind was EMI's purchase of Capitol Records way back; where the American managers gave top artists some artistic freedom. Flawed American ventures have included J. Arthur Rank and Tesco among many others. I hope Stagecoach may have learned something from their previous attempt.
Is the share price fall the result of adverse comment about First Group or just part of a general downward drift? I can't see any major reason why this company should be out of favour. If a politically motivated tanker drivers' strike should occur more people will be forced to use buses and trains. I think supplies of diesel for the railways should be secure, probably moved by rail. Sir Brian has always shown great aptitude for pulling his company out of the doldrums.
Three cheers for Stagecoach. Given the role of Scottish Old Labour in the affairs of the odious state-owned Scottish Bus Group, Labour should know all about bad businesses. Small shareholders who have stuck with Stagecoach for some years have been well rewarded.
I am gloomy in the long-term. While STV commands a large local audience, the rejection of popular ITV productions for screening in Scotland won't do them any good. "Taggart" has been saved for this year by a cobbled-up co-production package with BBC Overseas and others, but long-term the programme needs a serious lift, perhaps back to the original 3x1 hour episode serial format, with some name guest stars. ITV seems bent on an aimless downward spiral; one month they chase away the traditional Sunday-night decent drama market while another month they half-heartedly try to woo back this audience. Also when ITV3 has exhausted the backlog of decent drama with endless repeats, what then?. An ITV takeover might let STVG shareholders out, but at what sort of low price?
I am gloomy about any real recovery in the share price. Is ITV going to commission further episodes of Taggart on a regular annual basis? Is it a wise move by STV to drop Lewis, Midsomer Murders, etc or is this a bargaining counter for Taggart? Will fragmentation of the audience increase when the analogue signal is discontinued?