Stagecoach decision to drop buyout plan 'negative signal'

PERTH-based transport group Stagecoach's decision to drop its plan to buy a North Devon bus business from rival FirstGroup is a "negative signal" for the Aberdeen's company attempt to offload a larger chunk of its bus operations, an analyst has warned.

Stagecoach announced on Tuesday that it was abandoning the £2.8 million deal after the Office of Fair Trading decided to refer it to the Competition Commission.

Meanwhile, Stagecoach has already confirmed is looking at businesses being put up for sale by FirstGroup after it experienced falling demand at parts of its bus arm earlier this year and looks to pay down debt.

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