Saturday, 20 September 2014
Last updated 17 hours 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.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.