First/National Express swap idea?

[sconehead85]

Here is a thought regarding First and National Express.  This would not reduce First's fleet.

I think it might be an idea for First to acquire NX Dundee's base in exchange for either Leicester or Potteries.  This would give First a presence in the four main Scottish cities, and strengthen NX in the Midlands, where First are pulling out.

Just a wee thought!

Mc Sconehead85

[Bob]

I wish NXWMs plan to take over Arriva Cannock had come to fruition ! wouldve been great

[winston]

Here is a thought regarding First and National Express.  This would not reduce First's fleet.

I think it might be an idea for First to acquire NX Dundee's base in exchange for either Leicester or Potteries.  This would give First a presence in the four main Scottish cities, and strengthen NX in the Midlands, where First are pulling out.

Just a wee thought!

Mc Sconehead85

To be honest, I think NX Dundee is in far better shape than any of the Firsts Midlands fleets you mention, Dundee earns pretty high profit margins. There have been rumours that both Go-Ahead / NX are interested in the remaining First Edinburgh operations namely Livingston depot (which isn't that far from Dundee). I suspect it may be in case Lothian is ever sold off in the future.

One thing that is quite interesting, NX group have today issued an RNS Prospectus dated 19 November 2012 for the GBP1,000,000,000 Euro Medium Term Note Programme of National Express Group PLC guaranteed by West Midlands Travel Limited, it say's in the document below that net proceeds will be used for general funding. But I wonder whether the un-drawn credit facilities could be used to expand the group in new European & America markets. The only thing I don't understand is why the guarantor is WMT Limited?

http://www.rns-pdf.londonstockexchange.com/rns/4951R_1-2012-11-19.pdf

I'd personally like to see NX Group either takeover Go-Ahead or merge with them, and adopt the majority of Go-Ahead Groups operating practices and ditch the corporate NX bus livery, Go-Ahead have some quality UK bus operations/brands and also run via their joint venture Govia a number of UK rail franchises.

Or as second choice a merger with First Group, between them they would own a number of former large PTE operations in urban areas, the ionic NX coach brand in the UK / Greyhound in America, there is little overlap in the UK, however I suspect between the two groups their would be issues in America with the size of the combined school bus businesses and also the amount of debt the combined group would carry would still be an issue

[Gareth]

I dont quite understand what all that financial legal speak is on about  ??? :-[

But it seems as guarantor, If it all goes wrong, West Midlands Travel LTD (ie: NXWM) foot the bill?

[winston]

But it seems as guarantor, If it all goes wrong, West Midlands Travel LTD (ie: NXWM) foot the bill?

That's exactly how I read it, but don't see how WMT Ltd can be guarantor as they are not worth that kind of money

[Gareth]

And if they are, could we have a complete fleet upgrade instead of all this silly guarantor nonsense!

[j789]

I think there is scope for some sort of partnership in the West Mids between these two. The 144 is ideal as it could easily be interlinked with the 63 to provide a link to Bromsgrove every 15 mins - the train station in Bromsgrove is not in the town centre and is inconvienently situated so the scope for attracting bus passengers is high. First could operated the full length to Worcester with Nat Ex going to Bromsgrove (The frequency is already every 15 mins in the daytime between Bromsgrove and Worcester). The 146 could work too.