FirstGroup rejects investor Sandell's disposal plan

LONDON Wed Dec 11, 2013 2:35am EST

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LONDON Dec 11 (Reuters) - British bus and rail operator FirstGroup has rejected a proposal from hedge fund shareholder Sandell Asset Management to split the firm and sell off assets.

The group said on Wednesday it had reviewed Sandell's proposal and found that it is "not compelling and contains a number of structural flaws and inaccuracies".

The Financial Times reported that Sandell, which owns about 3 percent of FirstGroup, had urged the firm to sell its businesses in the United States - the Greyhound trans-American bus service and a school bus division.

FirstGroup said it was focused on the execution of its current strategy that was set out in May, which "will deliver superior value for shareholders compared to alternatives that were considered in detail earlier this year, and which remain under review."

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