Spanish up National Express stake
Monday November 23 2009
The largest shareholder in ailing National Express has upped its stake in the struggling firm for the second time in less than a week.
The latest swoop saw deputy chairman Jorge Cosmen buy 750,000 shares for £2.7 million, taking the Spanish family's share in the business to just under 19.5%.
The stake-building move will add to speculation that the Cosmens are manoeuvring to block a £360 million investor cash-call launched by the firm two weeks ago in a bid to repair its battered balance sheet.
The Cosmens - who abandoned their own attempts to buy National Express this year - previously raised concerns that the firm had been too hasty in dismissing a recent merger approach from Stagecoach.
The Cosmens' latest stake-building comes soon after an earlier £1.7 million swoop for more than 500,000 shares.
One analyst who did not wish to be named said: "It looks like they are trying to amass as much of a blocking stake as possible."
But the Spanish family faces an uphill task to prevent the rights issue going ahead as National Express only needs a simple majority of voting shareholders to proceed.
Mr Cosmen wants the group to look at further potential deals before the launch of a rights issue, which would cost the family around £70 million to support to prevent their stake being diluted.
He believes National Express "lacks strong management, a clear strategy and long term financial security".
The Cosmens were angered by the group's decision late last month to end merger talks with Stagecoach and urged the board to seek independent advice.
Press Association
