Transport group Stagecoach has ditched its support for a £1.9 billion merger with National Express and agreed to a higher rival £595 million takeover.
Stagecoach said it was recommending an acquisition by investor DWS Infrastructure for 105p a share in cash and has withdrawn support for the deal with Birmingham-based National Express which valued Stagecoach at around £437 million.
The National Express and Stagecoach tie-up, which was agreed in December, is being investigated by the Competition and Markets Authority which served a so-called initial enforcement order in January, stopping the firms from combining operations or selling any UK businesses while it probes the deal.
