- Stagecoach Group said it was disappointed to learn that the UK government had decided to take control of the country's East Coast Rail service in a move that would be costly for its Virgin Trains East Coast joint venture.

The joint venture currently operated the network under an agreement with Britain's Department of Transport. It had been negotiating a new direct-award franchise with the department.

Stagecoach Group said the financial consequences of the government's decision were expected to be consistent with guidance it provided in February.

'We are surprised and disappointed that the Department for Transport has chosen not to proceed with our proposals,' chief executive Martin Griffiths said.

'We believe our plans offered a positive, value-for-money way forward for passengers, taxpayers and local communities.'

'However, we respect the government's decision.'

At 1:24pm: [LON:SGC] Stagecoach Group PLC share price was -1.15p at 152.35p

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