Firstgroup war of words grows

An activist investor in Scottish transport firm Firstgroup has failed to file the correct paperwork as part of an attempt to force out six directors, including the chief executive.

Coast Capital, which has a 9.7 per cent stake in First, had demanded a special meeting of shareholders for 25 June (which is still scheduled to take place) to vote seven candidates on to the board.

But one nominee – David Martin, former boss of transport firm Arriva – failed to submit a so-called “consent” letter showing that he agrees to stand for the board position.

A source close to the Aberdeen-headquartered transport giant said that despite the six other consent letters being received, there has been no such letter from Martin.

“We can only assume there never was a letter and he does not want to be considered, but that is a matter for Mr Martin and Coast.”

Coast previously said that it wants Firstgroup to split its US and UK business, and remove itself from Britain’s rail industry, where it operates Great Western Railway, for example. But Firstgroup has claimed Coast is “rooted in the past” and simply wants to “seize control of a Uk-listed plc without paying a premium”.

One of Coast’s star turns, whom activists have lined up as the next chairman, is former Tory transport minister Steve Norris.

Since Coast first launched its assault, Firstgroup has decided to sell its US Greyhound bus business and is looking to separate its UK bus group, although bosses insisted the decision is nothing to do with the activist pressure.

Firstgroup said: “The company has not received any such confirmation from one of the Coast nominees, Mr David Martin, of his willingness to be appointed as a director of the company.

“Accordingly, that Coast nominee, Mr Martin, is not eligible to be appointed as a director of the company at the general meeting.”