ALL set to hit the long trail to market is the highly successful

Perth-based Stagecoach business. Yesterday seven major Scottish

institutions put up #5m in new equity capital, but it will still be

1991, or the following year, before the bus company is publicly floated.

Given this new funding, however, it will be well placed to grasp the

opportunities it expects will arise out of the privatisation of the

Scottish Bus Group. In addition it is considering further bus company

purchases in England.

Already one of the largest independent operators in the UK, Stagecoach

is motoring strongly under the lively management of its brother and

sister team.

Brian Souter is the chairman and Ann Gloag managing director. They

have worked together for about eight years, building a young and highly

motivated executive team.

The institutions involved are Murray Ventures, Noble Grossart

Investments, the Scottish Development Agency, Scottish Eastern

Investment Trust, Scottish Investment Trust, Standard Life Assurance and

TSB Scotland.

''This is an important step in preparing the group for a further

planned programme of acquisition, and for a Scottish flotation within

the next few years,''commented Mr Souter.

He was delighted that the seven institutions, representing what he

called a broad cross-section of financial enterprise in Scotland, would

be the group's co-shareholders as they expanded.

Stagecoach has been following a strategy of acquiring companies which

have been under-performing in the sector. It has also benefited from

adopting operating and commercial policies new to the bus and coach

industry, establishing a strong corporate identity, and striving for a

good reputation based on reliability and value for money.

The directors say they now feel confident that the company's

competitive position will allow it to grasp the opportunities opening up

from further privatisation and rationalisation within the industry.