[Federal Register: April 5, 2007 (Volume 72, Number 65)]
[Notices]
[Page 16872]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05ap07-158]
[[Page 16872]]
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DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[STB Docket No. MC-F-21020]
Firstgroup PLC--Acquisition--Laidlaw International, Inc.
AGENCY: Surface Transportation Board, DOT.
ACTION: Notice tentatively approving finance transaction.
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SUMMARY: On March 8, 2007, FirstGroup plc (FirstGroup), a noncarrier in
control of one or more motor carriers of passengers, filed an
application under 49 U.S.C. 14303 to acquire Laidlaw International,
Inc. (Laidlaw), a noncarrier in control of one or more motor carriers
of passengers.\1\ Persons wishing to oppose this application must
follow the rules at 49 CFR 1182.5 and 1182.8. The Board has tentatively
approved the transaction, and, if no opposing comments are timely
filed, this notice will be the final Board action.
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\1\ As supplemented by facsimile received on March 14, 2007.
DATES: Comments must be filed by May 21, 2007. Applicant may file a
reply by June 4, 2007. If no comments are filed by May 21, 2007, this
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notice is effective on that date.
ADDRESSES: Send an original and 10 copies of any comments referring to
STB Docket No. MC-F-21020 to: Surface Transportation Board, 395 E
Street, SW., Washington, DC 20423-0001. In addition, send one copy of
comments to the applicant's representative: Fritz R. Kahn, 1920 N
Street, NW., 8th Floor, Washington, DC 20036.
FOR FURTHER INFORMATION CONTACT: Julia Farr (202) 245-0359 [Federal
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339].
SUPPLEMENTARY INFORMATION: FirstGroup is a public limited company
organized under the laws of Scotland, U.K. It is the largest bus
operator and largest passenger rail operator in the United Kingdom.
FirstGroup's North American operations, First Student, Inc. (MC-191534)
and First Transit, Inc. (First Transit) \2\ (MC-576222) are controlled
by FirstGroup America, Inc., a wholly owned subsidiary of FirstGroup
USA, Inc.; and First Services, Inc. is wholly owned by FirstGroup USA,
Inc.
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\2\ In 2006 First Transit purchased Cognisa Transportation, Inc.
(Cognisa), a transit service provider registered as a motor carrier
rendering special and charter operations pursuant to authority
granted in MC-548215. Cognisa has been merged into First Transit.
Board authorization was not sought at the time of the transaction.
FirstGroup asks the Board, as part of this transaction, to approve
the acquisition of Cognisa by First Transit. In support of this
request, FirstGroup has provided, in the supplemental filing,
uncertified information that is insufficient under the requirements
of 49 CFR 1182.2 to support Board authorization of this transaction.
Accordingly, we deny FirstGroup's request for authorization and we
inform FirstGroup that it must file a new complete application under
49 CFR 1182 to authorize First Transit's acquisition of Cognisa.
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Laidlaw is a noncarrier holding company, with operations conducted
by its subsidiaries: Laidlaw Transit, Inc., d/b/a Laidlaw Education
Services (MC-161299); Laidlaw Transit Services, Inc. (MC-163344); and
Greyhound Lines, Inc. (MC-1515), Greyhound Canada Transportation Corp.
(MC-304126) and subsidiaries (collectively Greyhound).\3\
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\3\ Greyhound has eight affiliates in the United States
rendering scheduled intercity, special and charter bus
transportation: Americanos U.S.A., L.L.C. (MC-309813); Carolina
Coach Company (MC-13300); Crucero U.S.A., L.L.C. (MC-438895); Hotard
Coaches, Inc. (MC-143881); Mississippi Coast Limousine, Inc., d/b/a
Coastliner (MC-133182); Texas, New Mexico and Oklahoma Coaches,
Inc., (MC-61120); Valley Transit Company (MC-74); and Vermont
Transit Co., Inc. (MC-45626).
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The gross operating revenues of FirstGroup and Laidlaw exceed $2
million annually. Under the terms of the Acquisition Agreement,
FirstGroup has agreed to acquire Laidlaw by way of a merger of
FirstGroup Acquisition Corporation \4\ (a newly incorporated Delaware
corporation and a wholly owned subsidiary of FirstGroup) with and into
Laidlaw. On completion of the acquisition, Laidlaw will become a wholly
owned subsidiary of FirstGroup and, as in the past, will continue to
conduct operations through its subsidiaries.
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\4\ By letter filed on March 20, 2007, the name of the company
was changed from Fern Acquisition Vehicle Corporation to FirstGroup
Acquisition Corporation. The corporate structure of FirstGroup and
the proposed transaction have not changed.
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Under 49 U.S.C. 14303(b), the Board must approve and authorize a
transaction found to be consistent with the public interest, taking
into consideration at least: (1) The effect of the transaction on the
adequacy of transportation to the public; (2) the total fixed charges
that result; and (3) the interest of affected carrier employees.
FirstGroup and Laidlaw have submitted information, as required by
49 CFR 1182.2, including the information to demonstrate that the
proposed transaction is consistent with the public interest under 49
U.S.C. 14303(b). Applicant states that the proposed transaction will
have no impact on the adequacy of transportation services available to
the public, that the proposed transaction will not have an adverse
effect on total fixed charges, and that the interests of employees of
Laidlaw will not be adversely impacted. Additional information,
including a copy of the application, may be obtained from the
applicant's representative.
On the basis of the application, we find that the proposed
acquisition of control is consistent with the public interest and
should be authorized. If any opposing comments are timely filed, this
finding will be deemed vacated, and unless a final decision can be made
on the record as developed, a procedural schedule will be adopted to
reconsider the application. See 49 CFR 1182.6(c). If no opposing
comments are filed by the expiration of the comment period, this notice
will take effect automatically and will be the final Board action.
Board decisions and notices are available on our Web site at http://www.stb.dot.gov
.
This decision will not significantly affect either the quality of
the human environment or the conservation of energy resources.
It is ordered:
1. The proposed finance transaction is approved and authorized,
subject to the filing of opposing comments.
2. If timely opposing comments are filed, the findings made in this
notice will be deemed as having been vacated.
3. This notice will be effective May 21, 2007, unless timely
opposing comments are filed.
4. A copy of this notice will be served on: (1) The U.S. Department
of Transportation, Federal Motor Carrier Safety Administration, 400 7th
Street, SW., Room 8214, Washington, DC 20590; (2) the U.S. Department
of Justice, Antitrust Division, 10th Street & Pennsylvania Avenue, NW.,
Washington, DC 20530; and (3) the U.S. Department of Transportation,
Office of the General Counsel, 400 7th Street, SW., Washington, DC
20590.
Decided: March 30, 2007.
By the Board, Chairman Nottingham, Vice Chairman Buttrey, and
Commissioner Mulvey.
Vernon A. Williams,
Secretary.
[FR Doc. E7-6380 Filed 4-4-07; 8:45 am]
BILLING CODE 4915-01-P