16 Jul 2010 16:09
STAGECOACH WELCOMES RESOLUTION OF FUTURE OF PRESTON BUS
·; Competition Commission agrees sale of slightly smaller package
·; Negotiated settlement acknowledges concerns about initial decision
Stagecoach confirmed today 16th July 2010 that it has negotiated a satisfactory resolution of the future of its Preston Bus business.
Preston Bus Ltd was acquired by Stagecoach in January 2009 and the matter was referred to the Competition Commission. The Commission ruled in November 2009 that the Preston Bus business and some other separate Stagecoach operations in Preston should be divested.
Stagecoach fundamentally disagreed with the ruling and in December 2009 appealed the Commission's decision to the Competition Appeal Tribunal ("CAT"). The CAT ruled in May 2010 that a number of the Commission's findings were not supported by the evidence in the case.
Following the CAT announcement, Stagecoach has been in discussions with the Competition Commission to reach a resolution of the matter.
Stagecoach can confirm that the Competition Commission has agreed that a slightly reduced divestment package will now be offered for sale. The Competition Commission has also published a statement on its website acknowledging the CAT's judgment that a number of conclusions that the CC reached in its decision were not supported by the evidence.
A Stagecoach spokesman said: "We are pleased that we have reached a satisfactory resolution of the future of Preston Bus. The agreement acknowledges the concerns of Stagecoach and the CAT about how the initial decision was reached and the impact on the proportionality of the divestment order. As a result, we will now proceed to offer a slightly smaller package for sale than previously ordered by the Commission.
"We look forward to moving ahead with a sale process that will ensure we receive a commercial price for the business. The negotiated settlement will also provide more certainty for employees and passengers, as well as avoiding any further future unnecessary costs to the taxpayer and Stagecoach."
ENDS
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