Shareholders in UK transport company Stagecoach have been given until 21 May to accept a takeover offer from German investment fund DWS Infrastructure.
Earlier this month, Stagecoach’s board accepted a new £595 million cash offer from the German fund in preference to a previously agreed £1.9 billion merger with fellow UK transport firm National Express.
Stagecoach’s board told shareholders: “In deciding to unanimously recommend the offer, the Stagecoach directors consider that the value, certainty and timing advantage of the all-cash offer provides a more attractive proposition for Stagecoach shareholders than the National Express offer.”
But National Express has urged Stagecoach’s shareholders not to accept the DWS bid and argued that its merger with Stagecoach offers “superior value”.
The fate of Stagecoach now rests in the hands of its shareholders and whether they decide to accept the DWS offer by the deadline of 21 May.