Support for board shake-up at coach firm National Express

By ELLIOT WILSON
Updated: 20:16 EST, 12 April 2011

Activist hedge fund Elliott Advisors said it has secured the support of Spain's Cosmen family as it seeks to shake up the board of British transport group National Express.

Elliott, the company's largest single investor with a 17.5 per cent stake, has been seeking to shoehorn three new non-executive directors onto the group's board since March 29.

Initially it seemed attempts to convince Jorge Cosmen, National Express's deputy chairman, to join Elliott's campaign, were unsuccessful. But the Cosmen family, which owns 17.4 per cent of the transport group via its holding company, European Express Enterprises, appears to have had a change of heart.

Board shake-up: Activist investor has secured the support of the Cosmen family which owns 17.4 per cent of National Express

In a statement, Elliott advised investors that Cosmen would vote in favour of the three new directors at National Express's AGM on May 10.

Neither Cosmen nor his family were available for comment, but Elliott's coup is gaining traction. It now needs the support of just 15.1 per cent of National Express investors including institution such as Legal & General, a company with a 6.2 per cent stake and a history of volubly supporting shareholder activists. 

L&G declined to comment. The group (11p higher at 250.3p) has expressed its displeasure at the move.