Stagecoach in route dispute

STAGECOACH has been caught up in a serious dispute with competition regulators, which could see the rail and bus company forced to sell off parts of the business in southern England or face steep fare and route restrictions.

A provisional ruling by the Competition Commission found the Perth-based organisation's purchase of two competing bus companies – Eastbourne Buses and Cavendish Motor Services, Sussex – "will lead to a substantial lessening of competition".

Chairman of the inquiry Peter Davies said the two were likely to have continued competing if Stagecoach had not snared them.

The final decision will be made by the end of October.