Stagecoach opts for rival takeover in blow to National Express merger plan

British bus operator makes U-turn on 1.9bn proposal and agrees deal with fund managed by German firm DWS

The British bus operator Stagecoach has dropped its support for a 1.9bn merger with National Express, instead agreeing to be taken over by a major infrastructure investment fund in a 595m deal.

In a sudden U-turn, Stagecoach said it was recommending a sale to the fund managed by the German firm DWS Infrastructure for 105p a share in cash, and has withdrawn support for the National Express bid.