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FirstGroup Plc is exploring options including a possible disposal of its North American school bus and transit divisions, extending a breakup plan that already encompasses a planned sale of the iconic Greyhound brand.
The decision to appoint advisers for its First Bus and First Transit divisions means that Aberdeen, Scotland-based FirstGroup’s entire North American operation is slated for possible sale. Management has come under increased pressure from activist investors after the company swung to a first-half loss. Hedge fund Coast Capital LP has been pressing for a breakup, saying the current portfolio, which also includes U.K. train services, doesn’t make sense.
“Today’s announcement to formally explore all options to maximize value from our North American businesses reflects the resolute focus of the entire board on realizing value for all shareholders,” Chief Executive Officer Matthew Gregory said in a statement Monday.
First Bus is a yellow school-bus operation serving school districts. First Transit, the other division under review, includes fixed-route bus services, para-transit bus and related services, shuttle services and vehicle maintenance services.
To contact the reporter on this story: Christopher Jasper in London at cjasper@bloomberg.net
To contact the editor responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net
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