FirstGroup rejects break-up call from investor Transport firm FirstGroup has rejected a proposal from one of its shareholders, hedge fund Sandell Asset Management, to split up the group and sell assets. The Aberdeen-based bus and rail operator said it had reviewed Sandell's suggestion but found it "is not compelling and contains a number of structural flaws and inaccuracies." Sandell owns about 3 per cent of FirstGroup and is understood to have pressed the group to sells its Greyhound and school bus operations in the US. But FirstGroup said: "The board believes that the current multi-year programme that was set out in May, with clear objectives to improve growth and restore a profile of consistent returns and cash generation, will deliver superior value for shareholders." The group, which plans to invest about £1.6 billion in its bus and rail businesses over the next four years, saw its growth plans derailed last year by the botched bidding process for the West Coast main line franchise. Last month it reported a first-half loss of £8 million, down from £20.6m a year earlier, but bus revenues in the UK tumbled 14 per cent to £490.7m because of the sale of its operations in London and the previous year's Olympics-related boost. It has drafted in Aviva boss John McFarlane to replace outgoing chairman Martin Gilbert, who is due to leave at the start of next month after a 27-year stint with the business.