May 19, 2013 / 11:22 AM / 4 years ago

REFILE-FirstGroup plans 600 mln stg rights issue -report

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LONDON, May 19 (Reuters) - Bus and rail operator FirstGroup plans to announce a 600 million pound ($911.5 million) rights issue in the coming days to help pay off debt, British media reported on Sunday.

FirstGroup's chairman Martin Gilbert, who is also chief executive of Aberdeen Asset Management, will step down, according to reports in The Independent on Sunday and The Mail on Sunday.

The company, which is due to report full year results on May 22, will also announce a dividend cut, the Independent reported.

FirstGroup runs Capital Connect, Great Western and the TransPennine Express. Last year it was awarded the West Coast franchise - which links London to Glasgow - only for the government to tear up the deal after flaws were found in the bidding process.

Goldman Sachs and JP Morgan are working on the rights issue, the Independent said it its unsourced report.

A spokeswoman for FirstGroup declined to comment.

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