Mobico - comment

Mobico this morning posted deeply disappointing results. As unrelated as these segments are, that sits a little odd ahead of the refinancing discussions the company must hold. The cash from the sale of the US School Bus business came in in July, and management commented that, for now, it intends to roll the hybrid. Meanwhile, the new management team considers itself complete without a CEO and is looking for efficiencies across the business. As a first step, the UK division will be merged with ALSA in the hope that the Spanish management will handle it like an acquisition and run it leaner than local English management has been doing. That makes sense to us. We will be reviewing our position in the equity after taking a considerable hit this morning.