FirstGroup Directors have unanimously rejected a “preliminary and highly conditional indicative proposal” from US-based Apollo Management IX to buy all the rail and bus company’s shares for cash.
Details of the offer by the investment fund – which specialises in “distress purchases” – have not been revealed, but the Directors say it “fundamentally undervalues the company and is opportunistic in nature.”
Under Stock Market rules, Apollo now has until 1700hrs on 9 May to make a firm offer, or withdraw.
After the news broke FirstGroup’s share price which had halved to 79p – an all time low – since last summer, recovered to 113p at the beginning of this week, valuing the PLC at £1.4bn.
