(Reuters) – Coast Capital, FirstGroup’s biggest investor, on Monday again asked shareholders of the London-listed transport company to vote against its sale of two North American bus businesses, stepping up its campaign against the disposal.
The $4.6 billion sale of the businesses to Swedish private equity firm EQT (NYSE:EQT) Infrastructure has led to a shareholder rebellion due to concerns that it undervalues the assets. FirstGroup’s second-largest investor, Schroders (LON:SDR), has also opposed the move.
“Unless the deal terms are materially improved upon, along with proposed use of proceeds, Coast Capital urges its fellow investors to vote against this destructive proposal,” the activist investor said in a statement.
FirstGroup did not immediately respond to a request for comment.
Transport firm FirstGroup’s top investor steps up opposition to EQT deal
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.