Investor says National Express needs merger

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The Independent Online

The hedge fund Elliott Advisors, a 17 per cent activist shareholder in National Express, has called for a boardroom shake-up at the transport group and for it to invest more heavily in its US business.

In presentations to investors in London, Elliott Advisors outlined at least three strategic options to increase shareholders' returns by at least 25 per cent, as well as calling for three new independent directors at National Express's annual meeting on 10 May. It wants the coach operator to expand its US operation, carry out a "transformational" merger and conduct a "strategic sale" of assets.

But National Express said it "fundamentally disagrees" with Elliott's strategic options, which are short term and would not deliver the same value for shareholders as its existing strategy.

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