LONDON (ShareCast) - FirstGroup (LSE: FGP.L - news) has made a merger approach for fellow bus and rail group National Express (LSE:
NEX.L - news) .
"National Express confirms that on 19 June 2009 it received a highly preliminary approach regarding a potential share for share merger on unspecified terms from FirstGroup," the company said.
"At the present time, the board is focused on implementing a number of initiatives to strengthen the group and does not consider it appropriate to enter into discussions with FirstGroup," the firm said.
FirstGroup described the approach as envisaging "a merger to maximise the potential of the two companies."
It continued: "The board of FirstGroup continues to believe that there is significant industrial and commercial logic in a combination of the two companies, however FirstGroup would like to emphasise that there can be no certainty that an offer for National Express will be forthcoming."
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