According to an article in the Wall Street Journal, Coach USA Inc. said it is negotiations with an unidentified party to be acquired for $43 a share, or $1.07 billion.
The target involves a large bus and taxi concern, with operations in 33 states. It reportedly has hired a financial adviser to help its board with the negotiations, which is characterized as “exclusive discussions.”
While the company declined to identify its suitor, analysts believe the buyer could be a financial investor. In the past, market rumors suggested Canada’s Laidlaw, Inc. might be interested, but instead Laidlaw bought Greyhound Lines Inc., of Dallas earlier this year.
Another possibility is a suitor from offshore, observers add. There are several British companies that operate a variety of transportation services, and one, National Express Group, has been very active in acquiring North American companies recently.