In today’s briefing:
- DWS Gatecrashes NEX Offer for Stagecoach
DWS Gatecrashes NEX Offer for Stagecoach
- Stagecoach has agreed to a 105p cash offer from DWS (37% premium, 14.7x EV/Fwd EBIT). The board has withdrawn the prior recommendation for an all-share merger with National Express.
- National Express could respond by increasing its offer in line with DWS’s, but that would imply giving away c. 50% of the combined company, which I think unlikely.
- The offer is not incredibly generous, but there are risks (soaring fuel prices, inflation, etc.). Gross spread is nil and the offer is likely to close.
Before it’s here, it’s on Smartkarma
