8th May 2018 10:50
LONDON (Alliance News) - Shares in FTSE 250-listed FirstGroup PLC fell after US private equity firm Apollo Management IX LP said on Tuesday that it does not intend to make an offer to acquire the company following an initial offer last month.
FirstGroup shares were down 8.4% at 101.70 pence, the worst performer in the FTSE 250 Tuesday.
Last month, the London-listed transport operator rejected a preliminary and "highly conditional" 100% takeover offer from Apollo Management.
"Apollo confirms, on its own behalf and on behalf of the Apollo Funds, that neither it nor the Apollo Funds intends to make an offer to acquire FirstGroup," the private equity house said.
The company operates the Great Western and South Western railway franchises in the UK, as well as the Greyhound bus service in the US.
FirstGroup unanimously rejected the proposal saying it "fundamentally" undervalued the company and was opportunistic. It gave no financial details of the proposal.
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