NatEx clutches at straws

So what exactly is happening at National Express?

A number of 'NatEx' friendly stories have been appearing in the media recently.

Three weeks ago it was rumoured that NatEx and Stagecoach might merge.

The story was strenuously denied by Stagecoach.

No matter - NatEx shares reacted positively to the 'news'.

And only this weekend the Sunday Times claimed that NatEx's troubled East Coast franchise would move to a management contract.

A story given short shrift by the DfT, who quickly reaffirmed that rail contracts won't be renegotiated.

Even so the mere rumour reinvigorated NatEx's dire share price by 11.8%

Could these Alice in Wonderland ramblings have anything to do with the National Express annual meeting this Wednesday, a £400m rights issue and threatened boardroom shake-up?

Surely shareholders won't be so easily taken in?

UPDATE: This just in from Sim Harris...

Not sure that DafT defines the termination of a franchise and its replacement by a management contract as "renegotiation".

DafT has NOT given this story short shrift -- indeed, it has consistently declined to deny it over the past couple of days. If it is not true, or at least well-founded, why not say so?

More follows, I suspect.