ALEX DANIEL @alexmdaniel DIRECTORS at First Group have been branded "immature" by major investor and property tycoon Robert Tchenguiz, as shareholders demanded the struggling transport giant launch a full strategic review and sell off its US businesses.

The bus and rail operator is in the process of selling its US coach service Greyhound, but said earlier this year it would make its two other American bus businesses a major focus.

But Tchenguiz, who has a nearly five per cent economic interest in First Group, and private equity firm Coast Capital, which is a 10 per cent shareholder, have both demanded it sell the rest of its US assets. Tchenguiz, who shares a £20m mansion in Kensington with his girlfriend, his ex-wife and their two children, said: "Clearly, the rationale of a vibrant US business which is being managed in Aberdeen, six time zones away, is not the most effective or efficient management strategy." Shares in First Group fell 20 per cent last Thursday as it announced its interim results. Chairman David Martin told shareholders he was "looking at all options" regarding the US assets.

But in a broadside against First's management, a furious Tchenguiz said this statement was "ambiguous, confusing and misleading".

He told City A.M. that he had asked Martin on Friday to announce a formal strategic review of the business with a view to selling off the US assets, in a bid to boost shares again, but that Martin had refused.

Tchenguiz said this was "unforgivable". He added that the refusal was "very immature to be honest".

First Group said it had been "consistent and clear" that it hopes to drive value.

(c) 2019 City A.M., source Newspaper