Shares in transport group FirstGroup (LON:FGP) sunk 12 percent on Tuesday morning, after private equity firm Apollo Management said they wouldn’t be making an offer for the company.
The group released a statement following on from the one made on the 11th April, where they outlined making a possible offer for FirstGroup, confirming “on its own behalf and on behalf of the Apollo Funds, that neither it nor the Apollo Funds intends to make an offer to acquire FirstGroup”.
Shareholders in FirstGroup will be disappointed about the news, with several of them urging Apollo to make an offer because the transport company needs a “fresh face at the helm”.
FirstGroup operates in both the UK and the US, where it owns the famous Greyhound bus network. In the UK it runs bus services and the South Western rail line.
Apollo, who had $249 billion in assets under management at the end of 2017, has made a number of investments in the UK in the past, taking on jewellery retailer Claire’s and lending a hand to estate agent Countrywide.
Shares in FirstGroup (LON:FGP) are currently trading down 9.78 percent at 100.15 (0905GMT).
