National Express confirms £360 million rights issue

Date: 12/11/2009

National Express will launch a £360 million rights issue imminently, it was confirmed yesterday.

The fundraising will go towards stopping contracts being breached this week and reduce its £1.1 billion debt position.

The company has been inundated with problems in recent months, Including infighting between the Cosmen family and the rest of the board, takeover talks and losing the rights to the company's East Coast rail franchise.

The Cosmen family had opposed the rights issue, as the family asserts National Express does not have a strategic direction.

A Cosmen stake in National Express would be diluted to under six per cent if it withholds from fundraising and it would cost the family £70 million to keep their current stake.