Monday, 30 November 2015
Last updated 12 min ago
Dec 12 2013 | 10:57am ET
Sandell Asset Management is not taking "no" for an answer from British transportation company FirstGroup.
The U.S. hedge fund earlier this week called for FirstGroup to sell iconic bus company Greyhound Lines, a demand rejected by the company. Now, Sandell is upping the ante, seeking the sale of both Greyhound and FirstGroup's yellow school bus business in the U.S. Both companies were formerly owned by Laidlaw International, which FirstGroup acquired in 2007.
Sandell says that spinning off and listing the business could bring investors a 50% return and would give FirstGroup the money it needs to invest in its British rail and bus operations.
"FirstGroup can turn around its historic poor performance by focusing on its U.K. rail and bus businesses," Sandell CEO Tom Sandell said. Sandell owns 3% of FirstGroup.
"The group has engaged with Sandell several times, reviewed their proposal in detail, and believes that it is not compelling and contains a number of structural flaws and inaccuracies," FirstGroup shot back.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…