[Federal Register Volume 72, Number 65 (Thursday, April 5, 2007)]
[Notices]
[Page 16872]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-6380]



[[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