British transport operator Stagecoach Holdings yesterday confirmed it was in talks with loss-making CNT Group over a potential $843 million acquisition of its 36.05 per cent Citybus stake.
Stagecoach, which owns 16 per cent of the British bus market measured by route miles, has already paid CNT a non-refundable $10 million for the privilege of holding exclusive five-week talks with the company.
But Stagecoach stressed talks were still 'at a preliminary stage and there is no certainty to their outcome'.
CNT, with interests ranging from transport and property development to paint manufacturing, is understood to have granted Stagecoach exclusive rights to talks on the basis that it is willing to pay CNT about $2 per share.
CNT has been seeking buyers for Citybus for several months, following its failure to win a bid for the operation of 88 franchised bus routes offered by the Government.
CNT reported heavy net interim losses in September of $144.22 million after being forced to mark down several property, securities and long-term assets, and registering a loss on the sale of a subsidiary.
