National Express relief at boardroom truce

BIRMINGHAM based National Express, the rail and bus operator, appears to have defused a boardroom battle after its majority shareholder ended a bid to place three new directors on the board.

US hedge fund Elliott Advisors, which owns 18% of National Express, wanted the group to adopt a more aggressive strategy, with expansion in the US a priority, but is understood to have toned down its bid after opposition from other shareholders, including Legal & General.

In a statement ahead of today’s AGM,  National Express said: “Following discussions, Elliott Advisor has withdrawn its three resolutions from today’s annual general meeting and has committed to support the board and management on all other motions.
 
“The board and Elliott have also reached agreement that, subject to certain conditions, Elliott will not, inter alia, call a general meeting or seek to agitate against the company, its board or management publicly until after the company’s 2012 AGM at the earliest.”
 
The company confirmed that one of Elliott’s three preferred candidates, Chris Muntwyler, had been appointed as to the board.

Chairman John Devaney said: “National Express has a duty to deliver long-term value to all its shareholders and we are very pleased with the support for our existing strategy shown by so many of our investors in recent weeks. On behalf of the whole Board I would like to express my gratitude to the Cosmen family for their help in resolving this complicated situation to everyone’s satisfaction. I would also like to welcome Chris to the board where his significant experience of the transport and logistics industries will be a considerable asset.”
 
“With this behind us, the board and management can focus wholly on the important task of developing the business.”

The support of Spanish Cosmen  family was vital as they are reportedly keen for National Express to merge with another group, and mounted a failed takeover bid for National Express in 2009.

For latest National Express share price click here