FIRSTGROUP has launched a stinging attack on the US activist investor campaigning for the removal of its chairman and chief executive, branding its plans “inconsistent” and “irresponsible”.

Coast Capital, the biggest shareholder in FirstGroup with a near 10-per cent stake, has mounted a public attack on the performance of the transport giant, claiming its current board has presided over a “track record of value destruction and under-performance”. It wants to remove six of the company’s eleven directors, including chief executive Matthew Gregory and chairman Wolfhart Hauser, and replace them with seven of its nominees.

Mr Gregory unveiled a new strategy for the group last week, which could see it exit First Bus and scale back its rail franchising activity in the UK, while putting its Greyhound coach operation in the US up for sale. That would leave it to focus on First Student and First Transit across the Atlantic.

Now it has turned its fire on “self-styled” activist investor Coast Capital, which wants FirstGroup to exit UK rail. Confirming a general meeting will be held in London on June 25, when investors will vote on the Coast resolutions, FirstGroup said: “Based on its many interactions with Coast Capital to date and its claims and proposals, the board believes that Coast Capital is an opportunistic, self-interested player that is only focused on short-term gains.”

FirstGroup called on shareholders to vote against Coast’s proposals.