We Love Rumours

Darwen Group & Optare latest here

First buys Truronian

Rumours of First & Truronian

The industry appears no less turbulent in early 2008 than it has been over the last two years, if the renewal in takeover activity in late 2007 continues. Judging also by the rumours and counter rumours in circulation, as well.

As a nation, we love rumour and speculation. It allows us to add our thoughts and display our wisdom. If we all had a pound for every rumour of takeover we heard, we'd all be able to buy our own portfolio of operators. It doesn't always matter whether the rumour is true or likely to be. Sometimes, engaging in the gossip makes us feel as if we belong, as if we are in the know, as if we can add something of meaning to the debate. It's rather like Radio 5 Live. Good that it is, how would it ever fill its broadcast hours without chatter?

And so we wonder why, for example, is it that suddenly a number of Google searchers have arrived at Omnibuses2.0 having typed terms such as "Truronian selling" and "Stagecoach buys Truronian"? It actually started way back in 26 November but has accelerated this month. People out there are certainly asking the question, whether there's truth in it or not. And whether it's true or not isn't actually the point.

It's an interesting thought, though. Back in July, we ranked Truronian as 39th in the league of most desirable takeovers, in size terms at any rate. It becomes more interesting because First may find it difficult to buy and Truronian like Stagecoach has a reputation for innovation and marketing. It was 13 years ago that Truronian began its Branch Line operations. Five years ago Truronian won a national award for its work with Cornwall council and the Countryside Agency. But all this is assuming Truronian is, indeed, for sale. Truronian sold its taxi side in May 2007 and one of ts founders retired in February 2007.

It's probably a fact that if you have a company to sell, now may be is the time to do it. Increasing costs within the industry on the one hand and the threat of recession on the other combine to make bus and coach operations a little less attractive than it was one, five or ten years ago. It's clear that a number of high profile players are thinking along these lines and getting out. And not just the larger ones. It's conceivable that in 2008 the government will announce its promised capital gains tax changes that will make it more attractive especially for family businesses to retain more of their assets on a sale.

And so the rumours come and go. Another unusual search result here is "Go Ahead to sell West Midlands to Rotala" and even "Darwen Group buying Optare".

Ah, we English love rumours and speculation...