Stagecoach in talks over National
Transport group Stagecoach said it has been in exclusive talks with potential buyers of ailing rival National Express over a possible break-up of the firm.
Stagecoach has expressed interest in buying "certain assets and businesses" should the consortium bid by Spain's Cosmen family - the biggest shareholder in National Express - and private equity firm CVC succeed.
But Stagecoach will also consider "all other options" for National Express - which could include its own individual bid.
The latest twist in the National Express saga comes just a month after the firm said it would walk away from its loss-making East Coat Main Line rail franchise, set to fall under Government control by the end of the year.
The UK's biggest transport firm, FirstGroup, proposed an all-share merger but withdrew its interest last week before the interest from Cosmen/CVC emerged.
National Express also has two other rail franchises - if it manages to hold on to them in a possible legal battle with the Government - but Stagecoach will also be eyeing the firm's bus and coach operations in the UK, US and Spain.
Cash-strapped National Express, which is due to announce half-year figures, is labouring under a £1.2 billion debt mountain.
It had been contracted to run the East Coast franchise until 2015, but its expensive bid for the deal was derailed as passenger growth stalled in the recession. The deal lost £20 million in the first half of 2009.
The Cosmens took their 18.5% stake in 2005 when National Express entered the Spanish coach and bus market with the acquisition of Alsa, which was owned by the family.
Jorge Cosmen is currently deputy chairman of the UK firm, which employs 43,000 people.
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