Mobico Group - National Express Group Operational Safety Concerns - B

• On 3 January 2007, a speeding National Express coach overturned on the M4/M25 slip road, leaving three passengers dead. The driver was jailed for five years.
• In July 2009, a junior transport minister, the Gillingham MP Paul Clark, listed a series of concerns to National Express in a letter following a meeting with an employee of National Express East Coast who lives in his constituency. The worker claimed that, due to reduced maintenance checks, some trains were in use with defective brakes, an allegation that was strongly denied by the company, which stated it would "never compromise on safety". He wrote: "As a result of reduced maintenance checks, 'some long-haul train sets are in use with brake defects'.

• By 2009, National Express East Coast had come under increasing financial pressure due to various factors, including compounding rises in fuel prices and the poor economic climate of the time, commonly known as the Great Recession. In contrast to the company's projected revenue increases during its franchise, NXEC's actual operating income (generated primarily from ticket sales) had decreased by 1 percent during the first half of 2009.

• During April 2009, National Express confirmed that the company was still pursuing talks with the government over possible financial assistance with the franchise, either through a reduction in the premium due or some other form of assistance. During these negotiations, the company had reportedly offered to pay over £100 million to be released from its commitment to operate the franchise.
• In July 2009, the Department for Transport announced that it would take the National Express East Coast franchise into public ownership at the end of the year after National Express announced it would not invest any further funds into the franchise, effectively declaring it planned to default. In defaulting on the franchise, National Express directly incurred losses of £72 million by forfeiting bonds. Directly Operated Railways took over the East Coast franchise on 14 November 2009.

• On 3 September 2009, National Express' largest shareholder, Spain's Cosmen family with 18.5%, and CVC Capital Partners made a takeover offer of £765 million for the company. The Takeover Panel set a deadline of 11 September 2009 for all prospective bids.
• During September 2009, National Express agreed to allow the Cosmen/CVC consortium to undertake due diligence. During the following month, the Cosmen/CVC consortium had reportedly reached an agreement to sell the UK bus and rail operations to rival transport operator Stagecoach Group if its offer was successful. The deadline for offers was subsequently extended to 16 October 2009.
• On 16 October 2009, the Cosmen/CVC consortium announced that they had withdrawn their offer. That same day, Stagecoach submitted its own all-share bid to acquire National Express. This, too, did not proceed and, in November 2009, National Express announced it would raise the necessary capital through a share issue.