First rejects proposed take-over

FirstGroup has rejected a proposed take-over offer by Apollo Global Management.

The proposal was analysed by the operator and it was unanimously rejected, judging it to fundamentally undervalue the company. It was described as opportunistic by nature.

General Secretary of transport trade union, RMT, Mick Cash, said: “This looks like yet another bunch of speculators and asset strippers homing in on the British transport sector. First have been propped up by the Government on the Great Western routes for many years now and are currently in dispute with this trade union over the threat to axe guards on South Western Railway. Where this hostile bid leaves their UK bus and rail operations is anyone’s guess. The only solution to this kind of uncertainty and instability is public ownership and the threat of a US-based hostile takeover of First Group just reinforces that core message.”

Apollo describes itself as an alternative investment manager with offices around the globe.