Buyout Firm Tears Up a $1.7 Billion Greyhound Bus Ticket
Fears about asset-strippers are well-founded, but poorly performing companies like FirstGroup often need a shakeup.
Hop off the bus, Gus.
Photographer: Tim Boyle/Getty Images
Cancel the popcorn and vacate the ring-side seats. U.S. private equity group Apollo confirmed on Tuesday that it won’t make an offer for British train and bus operator FirstGroup Plc, which also owns America’s Greyhound network.
Apollo didn’t say why it’s backing away, and all we know from FirstGroup is that the price Apollo had in mind was too low to warrant further discussion. Still, it’s not difficult to imagine that Britain’s politics were a factor here — if only a small one. The U.S. buyout firm’s interest had drawn screams of “asset-stripper” from the left-wing opposition Labour Party and trade unions.