National Express Launches Rights Issue

LONDON (AP) — Struggling bus and train operator National Express PLC on Wednesday launched a 360 million pounds ($603 million) rights issue to reduce its 1.1 billion pounds debt burden.

The company said it was going ahead despite the objections of one of its directors, Jorge Cosmen, whose family holds an 18.5 percent stake. Cosmen earlier had joined with CVC Capital Partners Ltd. to explore a takeover bid for National Express, but announced last month that it would not make one.

Cosmen said at the time that he would support the company's fundraising plans, subject to undisclosed conditions. National Express confirmed the rights issue did not meet the Cosmens' conditions, and said it was uncertain whether the family would take up its share of the offer.

National Express, which has defaulted on its franchise to operate rail passenger service on the London-Edinburgh main line, warned that the government may also move to strip it of two profitable franchises.

Shares in the company were down 3.5 percent at 326.3 pence in early trading on the London Stock Exchange.