Activist Coast Capital ramps up its attack on First Group demanding it dump its US operations
Coast Capital has renewed its assault on Great Western Railway operator First Group
Activist investor Coast Capital has renewed its assault on the board of First Group.
The US hedge fund demanded that the transport company, which runs rail franchises including Great Western Railway and the Transpennine Express, sell or float its North American operations to return money to shareholders.
Coast, which owns more than 10 per cent of First, threatened to call a meeting of shareholders to allow them to vote on a split unless the company imminently announced a break-up.
First’s North American businesses include First Student and First Transit, which operate routes that feature the world-famous yellow school buses.
Coast’s chief investment officer James Rasteh believes these two businesses, if listed separately on the New York Stock Exchange, could be worth two-thirds more than they account for now.
The rest of the UK operations would then be well-placed to merge with peers, Rasteh added.
First is currently trying to sell Greyhound, its US long-distance coach operator.