Peace breaks out between NatEx and DafT

Happy news for beleaguered National Express share holders.

Today there will be a veritable love in between the doomed company and the Department:

Chris Mole MP, The Parliamentary Under Secretary of State for Transport and Andrew Chivers, Managing Director, NXEA will launch the Service Improvement Plan by naming a train at Liverpool Street station at 10.00am and unveil a customer information brochure giving details about the improvements.

Good to see Moley out and about on the network, but a shame the Noble Lord couldn't make it.

Perhaps a late and unexpected diary conflict?

UPDATE: This from the Master...

Sadly 'twas not to be.

Someone at DfT must have 'contacts' as a cable theft at Chelmsford caused the event to be cancelled.

UPDATE: This from Steve Strong...

Adonis couldn't do it because he was at a meeting with Hitachi "discussing IEP".

To suffer one ministerial cancellation may be regarded as a misfortune...

NXEA offers season ticket incentive

This just in from Sinoda...

I wonder if Eye readers might be interested in news of an interesting promotion to be launched next week by NXEA.

This from an internal briefing:

Annual Season Ticket (AST) Holder Renewal Incentive

The AST Renewal Incentive campaign offers £20 back for every AST due for renewal between Wednesday 23rd December 2009 and Wednesday 6th January 2010, if renewed by Thursday 31st December 2009.

Customers will also receive the 2010 price if this is less than the 2009 price.

The objectives of this campaign are to:

Ensure that 2009 Annual Season Ticket (AST) holders renew in 2009

Draw forward to 2009 those AST due to renew in the first week of 2010

Capture the details of all those who renew and obtain their agreement for future marketing activity

Communication materials to support the launch include leaflets, posters, email, web site and a press release. This campaign launches Monday 7th December 2009.

Of course, providing a small incentive to persuade hundreds of your season ticket holders to renew their annual tickets early might also help the cash flow of a financially ailing parent company that's facing a huge bill from its bankers if it doesn't reduce its debt mountain before the said 31st December date.

And if you thought that perhaps your Rights Issue wouldn't go ahead after all and there was a possibility that the game might be up completely on the final day of the year, it would certainly be rather handy to have already collected all the extra cash that would otherwise have belonged to a possible new incumbent.

What a shockingly cynical view. Surely this is merely an example of the Customer Service for which NatEx is so widely renowned?

Mediaballs - Beeb taking DafT line on 'early termination'

This just in from Brian Ayre (the low cost railway pundit)...

Will somebody please explain to the BBC that ending the c2c franchise on the date it was due to end, and not giving NXEA an optional three year extension, isn't "Stripping National Express of its remaining franchises".

I've had three calls from Aunty Beeb today - all using that phrase and when I tell them it isn't correct they go all glum, like someone has spoiled their party!

Still, never let the facts get in the way of a good story!

UPDATE: Captain Deltic calls to say...

Young Mr Miles did a sterling job on putting the record straight on BBC Radio 4's You and Yours.

UPDATE: I.K. Gricer has obviously kept Alistair Osborne up to speed over at the Daily Telegraph...

"Adonis backtracks on threat to take back franchises from National Express"

Indeed.

NXEC emails goodbye...

Those on the NXEC database should have received the following email by now:

From: National Express Coaches [mailto:newsletter@update.nationalexpress.com]
Sent: 13 November 2009 22:07
To: thefactcompiler@yahoo.co.uk

Subject: The Fact, thank you for travelling with National Express East Coast

If you are having trouble viewing this email, please visit this link

Marketing National Express Coaches to a franchise database should endear NatEx to Lord Adonis, DfT and the Treasury!

UPDATE: This from Carlton Browne of the FO...

I wonder if your readers noticed the “alternative” grammar in the first sentence of the round robin email below from Nat Ex.

I hope it is not indicative of what happens to standards when rail franchises get taken over by the public sector!

NatEx at sea as "no steer" on Cross Default intentions

This from Bloomburg...

National Express Finance Director Jez Maiden said the government has given “no steer” as to whether it will rescind the company’s East Anglia and C2C commuter-train franchises.

As National Express today launched a 7 for 3 Rights Issue in an attempt to raise £360m this isn't exactly proving helpful to the struggling company.

Perhaps DafT and Lord Adonis should clarify their position?

UPDATE: Suggestions in the City that Spanish state operator RENFE is keen to enter the UK rail sector.

UPDATE: This from a Mr Saltaire...

That’s a good ruse to bump up the NatEx share price!

Pudsey overlooked in great East Coast giveaway - Shocker

Telegrammed by Globetrotter
With apologies to the BBC, but isn’t his Lordship out by a week in his timing?

Surely it’s next Friday night (November 20) when UK taxpayers are traditionally invited to dig deep in their pockets and give generously for charitable causes?


Not that last year’s £28m would go far in filling the bottomless pit formerly known as NXEC.

UPDATE: This from J Alfred Prufrock...

Oh, I don't know.

£25 million would probably top up DOR East Coast's revenue shortfall for almost the next four months, now that NXEC's £40 million has gone.

Adonis pulls plug on NXEC - Official Statement

Franchised Rail Services: Update

The Secretary of State for Transport (Lord Adonis): Further to my statements on 1 July 2009 [Official Report, Col.225 and Official Report, Col. WS 24] on East Coast main line rail services, after the close of the markets yesterday I notified National Express East Coast Ltd that I am terminating their franchise with effect from 11:59 pm on 13 November.

The publicly owned East Coast Main Line company will take over running of this franchise from that time, with an orderly handover from National Express East Coast. I can assure the travelling public that services will continue without disruption and all tickets will be honoured.

Staff currently employed by National Express East Coast will transfer to the East Coast Main Line company under the Transfers of Undertakings (Protection of Employment) Regulations (TUPE), with the necessary statutory consultation.

Cross Default update

Shouldn't something be happening soon?

'Nuff said.

UPDATE: This from Leo Pink...

I see that the LibDems have now also joined the clamour for NatEx to be stripped off their other franchises.

National Express East Anglia is currently responsible for procuring 30 four car Electrostar EMUs and is already on the maximum support under cap and collar.

Do we really want this dumped on the taxpayer?

NatEx walks away from Stagecoach talks

This from The Times...

National Express, the struggling transport group, has walked away from a last-gasp merger with rival Stagecoach over concerns that competition regulators could derail a deal.

State operator 'East Coast Mainline' is expected to take on the NXEC franchise at the December Timetable change.

National Express update

Looks like the wheels have come off the Cosmen CVC deal and with it Stagecoach's rescue of the C2C and NXEA franchises.

Whilst this leaves National Express in the brown stuff it may prove even more embarrassing for the Noble Lord.

City lawyers are rumoured to be dusting off wheelbarrows in the expectation of huge fees for sorting out Cross Default.

UPDATE: This from Leo Pink...

So that's 'rescued' as in 'Blackbeard the Pirate' rescued' the passengers on passing merchant ships?

See also 'liberated' as in my dad 'liberated' the Iron Cross in my medal collection.

UPDATE: This from Ithuriel...

So does this mean that wee Brian's court battle against the Department of Dogs' Breakfasts over the timing of cap and collar, the delays to ITSO smartcards and compensation for the missing £200 million is on again?

Will the lawyers have enough wheelbarrows to go round?

Exciting National Express news!

But...

You'll have to wait till tomorrow!

UPDATE: Thanks for the emails and apologies for the delay - this one is evolving.

Eye will post details as soon as practicable...

Ray O'Toole Speaks!

INTERNAL ANNOUNCEMENT:

11 September 2009

APPROACH TO NATIONAL EXPRESS BY CONSORTIUM

I promised that I would let you know as soon as we had any more information to share regarding the latest approach we received from the CVC/Cosmen family Consortium.

As you know, last week we received an approach in connection with a possible cash offer of £5.00 per share, which values National Express at £765 million. Please note this is not yet a formal bid.

As a Board, we have been evaluating the potential offer carefully and also speaking with our major shareholders and advisers. Today we have announced to the City that we have agreed to allow the Consortium to progress to the next stage of the process based on the £5 per share indicative offer.

The next stage is known as "due diligence" which is a very structured process that involves the Consortium examining our business and finances in some detail.

The process will take four weeks after which the Consortium will either go ahead with a formal offer of £5.00 per share or walk away.

Its important to note that, under the rules of the Takeover Panel, the Consortium will not be allowed to reduce their offer below £5.00 or increase it above £5.00 as a result of the due diligence work they are about to undertake. Their only options are to make a formal offer at
£5.00 or to walk away.

It is by no means certain that the Consortium will submit a formal offer at the end of the due diligence process. If a formal offer is submitted, the Board will decide on its final recommendation. If a formal offer is not received, the Board plans to continue its independent strategy and to execute our own equity finance plans.

I also want to stress that while the due diligence process is underway we will still be continuing with our plans to prepare to raise equity independently. All of our existing plans, for example East Coast or the move to the new Birmingham Coach station, will all continue unchanged.

I realise it is very easy to be distracted by these ongoing developments as we proceed along the twin track approach of the Consortium's due diligence process, and our own equity financing plans.

However whatever the future direction we take is, it important to remember that we have customers to serve, people to look after and a business to run.

In either scenario it is vitally important that we deliver our year-end performance so please continue with the great work you have been doing so far.

Ray O'Toole - Chief Operating Officer
National Express Group

Doomed National Express enters talks with bidders

This from the Suffolk Evening Star...

National Express confirmed today that it was now discussing “certain aspects” of the consortium's bid, with a further announcement following “as appropriate”.

If the Cosmen/CVC deal goes ahead the group will be broken up, with rival Stagecoach having reached agreement with the consortium to takeover National Express's UK rail and bus businesses.

National Express - about to make travel even simpler...

Stagecoach rattles the bucket

Good news for East Midlands Trains passengers!

This from the Independent...

Some rail passengers will have to fork out for fare rises of up to 145 per cent from next week.

The East Midlands Trains company is making alterations to some of its Travelcard tickets which will affect passengers travelling in the morning from Market Harborough, Kettering and Wellingborough to London.

Presumably Stagecoach supremo Brian Souter needs all the pennies he can get if he is to buy the rail and bus businesses of the doomed National Express Group.

Meanwhile, don't expect DafT to kick up a fuss over EMT's swinging fare increases.

If Souter can raise the necessary gee-gaws to buy C2C and NXEA it will save DafT the public humiliation of testing Cross Default in court.

Happy days!