COAST Capital yesterday renewed its attempts to engineer a breakup of transport operator First Group, saying it will try to force an emergency general meeting of shareholders unless the group announces a separation of the firm's US and UK operations.

First Group has long been under pressure from several of its investors to separate the North American operations into independent businesses, and launched a "strategic review" of these assets in December.

However, Coast said that since then, "shareholders have heard nothing from the company, and the share price has declined by 20 per cent".

The activist investor, which has a 10 per cent stake in First Group, said in a filing that in the absence of a total divestment, the bus operator should list the businesses on both a North American bourse and in London.

"This will allow UK investors to realise value from their investment in the company, and enable new North American investors, public or private, to buy into the American operations".

Coast said that the American operations, First Student and First Transit, are worth "notably more" than their book value of 100p per share, estimating a price of 165p for each.

(c) 2020 City A.M., source Newspaper