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Cleveland staff bid for buyout

19th January 1989
Page 15
Page 15, 19th January 1989 — Cleveland staff bid for buyout
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Which of the following most accurately describes the problem?

• The 500-strong workforce at Cleveland Transit has mounted an employeemanagement bid to take over the municipally-owned bus operator.

Two of the three shareholders — Middlesbrough Borough Council and Stocktonon-Tees Borough Council — have agreed in principle to the buyout. Only Langbaurgh-onTees Council, which holds a minor stake in the firm, has yet to agree.

Cleveland Transit managing director Malcolm Howitt says: "The structure of the workforce buyout may be similar to the Employee Share Ownership Plan at recently privatised Yorkshire Rider."

If Langbaurgh Council concedes the takeover, the three councils will then have to agree the buyout conditions between them.

Cleveland Transit runs 114 double-deckers, 16 minibuses, 12 coaches and 63 singledeckers. The company mostly runs local bus services in the Stockton and Middlesbrough area, although it also undertakes private hire and tours and excursion work.

Its coaching division trades under the name Coaching Travel. All vehicles operate from one dep'ot in Stockton-onTees. The company also owns a depot in Middlesbrough, although no vehicles are operated from it.

Howitt says council shareholders met recently to consider an approach from another bus operator to buy the Cleveland Transit operation but the offer was rejected.

o Cleveland Transit in February will take delivery of 10 new Leyland Lynxes which will run on local services. It is also considering the addition of more minibuses to its fleet.


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