The declaration came after the FirstGroup share cost rose more than seven percent in trading on the London market today. The stock closed up 7p at 101.8 p.
In a declaration launched after the market closed, the business said: “The board of FirstGroup has actually considered the proposal in detail and believes that it fundamentally undervalues the business and is opportunistic in nature. Accordingly, the board of FirstGroup has all declined the proposal.”
No details was supplied on the worth of the Apollo method. Based on its share cost at the close of trading tonight, FirstGroup has a market worth of around ₤ 1.2 billion.
Under takeover guidelines, Apollo has until 5pm on May 9 to make an offer for the company or stroll away for at least six months.
FirstGroup, which runs First Bus in Scotland and the Greyhound coach service in the United States, added:” There can be no certainty that any firm offer will be made nor regarding the terms on which any offer may be made. A more statement will be made in due course if when proper.”
The proposition for FirstGroup originated from Apollo Management IX LP, a department of Apollo Global Management which at December 27 had overall possessions under management of around $249 billion, according to its site.
Apollo explains itself on its site as “contrarian, value-oriented investors in personal equity, credit and real properties, with substantial distressed knowledge.”
It adds: “We run our service in an integrated manner which our company believe distinguishes us from other alternative investment supervisors.”
The transport giant, which runs bus and rail services in the UK and The United States and Canada, validated to the stock exchange that it had actually received a “preliminary and extremely conditional indicative” proposition from Apollo Global Management connecting to a possible money offer for the business.