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Rif kind lays down rules

15th February 1990
Page 22
Page 22, 15th February 1990 — Rif kind lays down rules
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Which of the following most accurately describes the problem?

• Details of the Scottish Bus Group disposal programme have been announced by Scottish secretary Malcolm Rifkind, who has made it clear that the main objective is to promote competition in the Scottish bus industry.

The sale of the nine SBG local bus companies and the Citylink coaching subsidiary will start soon and is expected to be completed by April 1991.

No buyer will be allowed to buy more than two of the local bus companies, and restrictions have been placed on the purchase of geographically-adjacent companies.

Rifkind stresses that em ployees should be able to buy a financial stake in their companies, and says bids involving a controlling interest by employees would receive a 5% price preference. Management./ employee buy-out teams are in place in all SBG companies.

The publication of the programme has encouraged potential buyers to declare an interest, one of which is Aberdeen-based Grampian Transport Moir Lockhead, managing director of GT, agrees with the need to maintain competition, but not with the restriction to two purchases. "We favour local, or at least Scottish control of the industry, and we fear that the restrictions may work against that," he says. He is also concerned that the SBG programme does not clarify how it will treat companies like his, which are already involved with at least one SBG company.

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Locations: Aberdeen

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