Possible buyout: Read this and weep, shorts!Stagecoach Leasing Unit Sale Seen - Newspaper
Sunday, March 19, 2000 09:27 AM
LONDON (Dow Jones)--Transport group Stagecoach Holdings PLC (U.SGS, news, msgs) is to sell its Porterbrook train leasing operation to Abbey National PLC (ANBA, news, msgs) for GBP1.3 billion, the U.K.'s Sunday Business newspaper reports.
The paper said the move, to be announced within a fortnight, was aimed at boosting Stagecoach's share price.
The paper also said Abbey National was understood to be negotiating to buy Seattle-based aircraft lessor Bouillion Aviation from Deutsche Bank AG (G.DBK, news, msgs) for GBP250 million.
No one from Abbey National or Stagecoach was available for comment.
The paper said Stagecoach would use the proceeds from the sale to fund expansion in the U.S. and Europe.
The paper quoted +industry insiders+ as saying the company may be tempted to bid for America's biggest bus operator, Laidlaw Inc. (LDW, news, msgs), which owns the Greyhound brand.
The paper also quoted analysts as saying Stagecoach may use the money to buy back shares, or that the group's Executive Chairman Brian Souter may consider taking the company private.
Quote for referenced ticker symbols: ANBA, LDW
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