Stagecoach Group (SGC) has started its second legal action against the Department for Transport in less than a month after the operator was shut out of bidding for key rail franchises in a row over staff pensions. In the latest stage of a battle that lays bare the crisis facing the rail franchising system, Stagecoach said that, along with several consortium partners, it had begun legal action against the department after being prevented from bidding for the West Coast Partnership contract. It was joined in its action by SNCF, the French railways group, and Virgin Trains, part of Sir Richard Branson’s trading empire. The action comes after the department blocked all three companies from bidding for the East Midlands, West Coast Partnership and South Eastern franchises. Stagecoach argues that it was excluded from bidding for the franchises unfairly after it refused to take on open-ended pension liabilities for staff.
The boss of Mothercare (MTC) has insisted the company is bouncing back, despite falling sales and widened annual losses. It reported a pre-tax loss of £83.7 million for the 53 weeks to March 30, up from £72 million last year, while revenue fell 13.5% to £566.3 million. Investors were cheered by the results, however, seeing them as a sign of progress in the company’s turnaround efforts, and its shares rose 9% to 22¼p. The maternity and children’s chain cut hundreds of jobs and shut more than a third of its shops through a company voluntary agreement this year in an attempt to become debt-free.
The founder of the exhibitions group that runs the Dubai Airshow and his family stand to make more than £50 million after he agreed to sell the company to a private equity firm in a £561 million deal. Neville Buch, who founded Tarsus Group (TRS) in 1998, is the media group’s executive chairman and biggest shareholder, with more than 7% of the company. Mr Buch, 73, said that he and fellow independent directors had agreed a recommended cash takeover by Charterhouse Capital Partners for 425p a share. The deal values Mr Buch’s shareholding and share options at almost £42 million while his son, daughter and wife together own a further 2%, worth more than £13 million. The group reported revenues of £100 million and pre-tax profit of £16.5 million last year. Mr Buch founded it two years after selling Blenheim, his previous exhibitions business, in a deal that made him £26.7 million.
Informa (INF) has suffered another bruising annual meeting after investors opposed the re-election of its non-executive director over claims that he holds too many board positions. The events and business information group said that it had noted investors’ concerns and would “reflect on the feedback received” after 36% of shareholders who voted opposed the re-election of Stephen Davidson, 63. He is a chairman at four other companies, including Rosenblatt, a law firm, and Datatec, a communications technology company. ISS, the shareholder advisory service, urged investors to oppose his re-election. It also advised investors to vote against the re-election of David Wei, 48, another non-executive director at Informa, but he stepped down before the annual meeting yesterday. Cindy Rose, 53, UK chief executive of Microsoft, also resigned her director’s seat at Informa. She was appointed to the board of WPP, the advertising conglomerate, in March.
