MUTINOUS National Express shareholder Elliott has outlined a trio of strategies to re-focus the transport company, including a call for it to merge with another UK transport provider.

The American hedge fund owns 17.5% of National Express, and has been pushing for changes in the company’s boardroom at the next annual general meeting next month. Last week it claimed it had won the support of the Cosmen family.

Elliott has been throwing in its own suggestions for the future of the business during meetings with investors this week, including the suggestion it teams up with a company such as Stagecoach, sell off part of its business or re-focus its gaze on the United States.

While the hedge fund has been keen to praise the way chief executive Dean Finch has led a turnaround of the business.

However, it sent letters to company investors last week urging them to elect three independent directors at the May 10 AGM, who it said would offer “fresh impetus and thinking”.

It requires 50% of votes from shareholders to succeed, but 2.68% shareholder Co-operative Asset Management has accused the hedge fund of pushing inexperienced board members into the positions. The third largest shareholder M&G is also expected to use its 13% stake to back the current management.

Co-operative Asset Management corporate governance analyst Phineas Glover said last week: “We would not welcome the distraction that may be brought about by a broader strategic review and believe the company should continue to focus on turning the business around.”

National Express itself has said Elliott’s proposals are “focused on the short term” and that it “fundamentally disagrees” with such actions.

It added Elliott’s bid to put in the directors would fly in the face of “good corporate governance”.