National Express presses on with £360 million rights issue, Cosmen protests

Date: 25/11/2009

National Express officials are claiming it will win its bid for a £360 million rights issue despite the largest shareholder acquiring more shares in an effort to stop the bid.

The Cosmen family reported on Tuesday it had acquired 400,000 additional shares in the company, raising its 18.5 per cent stake in the company to 19.72 per cent.

National Express' Friday board meeting is scheduled in order to hold an official vote on the rights issue, which the Cosmen family has expressed opposition to in recent meetings.

The rights issue would mean the Cosmens would have to buy an additional £70 million in shares at National Express to keep their stake.

The Cosmens have claimed they have the money for the additional share purchase, though they are reluctant to be on board while they believe the rights issue fails to address National Express’ strategy or financing issues.

Funding acquired by National Express in the rights issue is expected to go towards current short-term financing commitments and the company reports it believes no other major institution is voting against the issue.