First/Laidlaw On the buses

FirstGroup’s $3.6bn bid for Greyhound bus operator Lai-dlaw is a sign of the times. At first glance, it looks like a straightforward attempt by Britain’s biggest bus company to expand in the US. But it’s more than that. It’s an indica-tion that even supposedly humdrum companies, like bus firms, are starting to use leveraged buyout techniques. FirstGroup is paying in cash. To finance that, it is issuing a sliver of equity and then piling leverage on top. After the deal, group net debt will rise ...