National Express rejects takeover bid from First Group (Financial Research Proposal

National Express rejects coup detat bid from First Group (Financial Times, 29 June 2009) - Research Proposal Example1.2 billion pounds to banks (Gill, 2009, p 1). The get together ground governing body has in addition complicated National Express fiscal woes by the government refusal to renegociate the conditions for its East Coast rail franchise with the transport business. The hard-line position adopted by the government is attributed to East Coast rail franchise being the most lucrative in the unify Kingdom serving the United Kingdom commercial hubs such as Edinburg and London. Besides, citing the government billet in its fiscal crisis, National Express board also cited its quest to solve the ?1.2 billion debt as its first antecedence before reconsidering the bailout from FirstGroup limited. In, addition, National Express board viewed FirstGroup as their rival in the transport business and so postulated a sellout of the company to FirstGroup as surrender to a business enem y. National Express boards were thus raring(predicate) to retain the legacy of their companys in the transport industry (Miller, 2011, p 85). Despite, the rejection of FirstGroup offer, eruditeness and encyclopaedism provide the best bailout opportunity and option to speech National Express from the current monetary hardships. This research thus draws on the case sturdy of National Express and FirstGroup to rationalize on the best declaration to solve a corporate boldness financial solution. This involves an analogy acquisition and acquisition as a financial solution with other financial crisis solution mechanisms recommended in fiance and accounting. The research establishes higher financial crisis solution rationality from acquisition and acquisition formulated financial solution compared to other possible and pronto available financial and accounting options. Literature Review An acquisition mimics government bailout to corporations during financial crisis. The similarity in the midst of acquisitions and acquisition is evident in the supply of a large amount of money to the corporation under financial crisis, which is subsequently used to pay its bankruptcy threatening debts. These facts are manifest in the proposed acquisition between National Express and FirstGroup, whereby Nation Express was offered a large sum of money by FirstGroup to pay its 1.2 billion debts. The ?1.2 billion proposed buyout of National Express is comparative to the governments financial bailout to financial corporation during the 2007-2008 global financial crises (Milmo, 2009, p 1). In United States, the government acquisition styled bailout totaled $13.9 one million million leading the government bailout to be considered as more of an acquisition buyout of the financial stricken institutions than a rescue bailout package (Birdsall & Fukuyama, 2011, p 31). Acquisitions and acquisition of financial stricken corporations is also licked to the nationalization of finically po or playacting or financially endangered businesses by the government (Finkelstein & Cooper, 2010, p 116). The same financial crisis incident illustrates the role of nationalization which mimics acquisition and acquisitions in the rescue of financial institutions from bankruptcy during economic downturns. A typical representative of this financial rescue strategy is illustrated by the nationalization of the Northern Rock Bank in the United Kingdom at the verge of its bankruptcy during the financial crises. The Northern Rock Bank case also illustrates the irrationality of the hard-line position by a corporation board or the corporate organization stakeholders,