National Express rejects takeover bid from First Group (Financial Research Proposal

National run rejects takeover bid from First Group (Financial Times, 29 June 2009) - Research Proposal Example1.2 million pounds to banks (Gill, 2009, p 1). The United Kingdom government has also complicated National Express financial woes by the government refusal to renegotiate the conditions for its East Coast fulminate franchise with the jinx business. The hard-line office adopted by the government is attributed to East Coast rail franchise being the most lucrative in the United Kingdom serving the United Kingdom commercial hubs such as Edinburg and London. Besides, citing the government role in its financial crisis, National Express visiting card also cited its quest to solve the ?1.2 billion debt as its first priority before reconsidering the bailout from FirstGroup limited. In, addition, National Express board viewed FirstGroup as their rival in the transport business and thus postulated a sellout of the companionship to FirstGroup as surrender to a business enemy. Nati onal Express boards were thus eager to retain the legacy of their companys in the transport industry (Miller, 2011, p 85). Despite, the rejection of FirstGroup offer, acquisition and acquisition provide the best bailout opportunity and option to rescue National Express from the new financial hardships. This investigate thus draws on the case sturdy of National Express and FirstGroup to rationalize on the best solution to solve a corporate organization financial solution. This involves an analogy acquisition and acquisition as a financial solution with other financial crisis solution mechanisms recommended in fiance and report. The research establishes higher financial crisis solution rationality from acquisition and acquisition formulated financial solution compared to other possible and readily available financial and accounting options. Literature Review An acquisition mimics government bailout to corporations during financial crisis. The similarity between acquisitions and ac quisition is evident in the supply of a large amount of coin to the corporation under financial crisis, which is subsequently used to pay its bankruptcy threatening debts. These facts are manifest in the proposed acquisition between National Express and FirstGroup, whereby Nation Express was offered a large sum of money by FirstGroup to pay its 1.2 billion debts. The ?1.2 billion proposed buyout of National Express is comparative to the governments financial bailout to financial corporation during the 2007-2008 global financial crises (Milmo, 2009, p 1). In United States, the government acquisition styled bailout totaled $13.9 trillion leading the government bailout to be considered as more of an acquisition buyout of the financial stricken institutions than a rescue bailout package (Birdsall & Fukuyama, 2011, p 31). Acquisitions and acquisition of financial stricken corporations is also licked to the nationalisation of finically poor performing or financially endangered businesse s by the government (Finkelstein & Cooper, 2010, p 116). The same financial crisis incident illustrates the role of nationalization which mimics acquisition and acquisitions in the rescue of financial institutions from bankruptcy during economic downturns. A typical example of this financial rescue strategy is illustrated by the nationalization of the Northern Rock avow in the United Kingdom at the verge of its bankruptcy during the financial crises. The Northern Rock Bank case also illustrates the irrationality of the hard-line position by a corporation board or the corporate organization stakeholders,