First Group hits buffers as private equity bidder walks away after rejected bids

[whole diary]

[ChrisB]

From This is Money, via MSN

Shares in First Group hit the buffers as its private equity suitor abandoned plans to buy the train and bus operator.

The stock fell 11.4 per cent, or 14.7p, to 114.2p after Miami-based private equity group I Squared walked away having seen a number of bids rejected.

First Group, whose work includes running the Avanti West Coast mainline and South Western Railways, rejected a 118p a share offer in June which valued it at £1.2billion.

The company, which also runs around a fifth of local bus services outside London, yesterday revealed I Squared tabled a final offer of 135p a share on Monday.

But it said this still ‘significantly’ undervalued the company.

[stuving]

That (from Yesterday) is a bit over the top, given the price has just gone back to where it was in May when the I Squared offer appeared. It's not as if there an extra drop due to market reaction to the (very sketchy) rumours of Avanti discussing giving up their contract.