Nash's TransBus rescue bid off the road

HUGH Nash, the Scottish corporate financier who was leading a bid for TransBus International has pulled out of the race to acquire the bus making part of Mayflower Corporation, Nash, a director of the Edinburgh-based investment bank Noble & Company, was leading a consortium of unnamed Scottish business people, that is thought to have tabled a bid of around (pounds) 140-(pounds) 200m for the bus maker.

This is the second bid that Nash has made for TBI. He said the first was made "with equity and debt funders in December 2003 but with a different consortium." A revised approach was made to receivers "with a different consortium of investors who wanted to help out" to Deloitte after TBI collapsed into receivership.

A spokesman for Noble Group, said "the consortium has withdrawn, which is a shame."

TransBus - which has production sites in Falkirk, Scarborough, Wigan, Belfast and Leyland - is a subsidiary of Mayflower, which went into receivership after the discovery of a (pounds) 17 million hole in its accounts on March 31.

Another bidder for part of the TBI group, the private equity firm Aberdeen Murray Johnston, on Friday told the Sunday Herald that TBI would be more efficient and have more chance of success if the various divisions - including Dennis, Plaxton and Walter Alexander - were owned and managed separately.

AMJ is backing a management buy-out of TBI's Scarborough-based Plaxton unit.

Paul Newton, director of AMJ Manchester, said: "The Mayflower experience just illustrates that one large entity is not necessarily more successful. I think the individual businesses can prosper on their own."

Under the administration of Deloitte's Nick Dargan, Mayflower and Transbus were put up for sale and potential buyers had until Wednesday to lodge proposals.

Newton said: "We have completed our due diligence and, if our offer goes through, we can deliver the cash very quickly. By the end of the month if necessary."

Dargan claimed the businesses have the backing of customers, suppliers and employees which would allow an orderly review of the offers received. "We will shortlist those parties who we believe offer best value for all stakeholders". He intends to conclude the transactions during May.

He added: "Given the level of interest received, we remain optimistic that the businesses will be sold as going concerns."

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