Insider Media Limited

The board of transport giant National Express has called a truce with its biggest shareholder after weeks of unrest. Elliott Advisors, which owns about 17.5 per cent of the company, said it will not interfere with or publicly question the board's decisions for the next year as the company prepares for its AGM this afternoon. In return, Birmingham-based National Express has appointed Chris Muntwyler, a candidate proposed by Elliott, to its board.

National Express will hold its AGM this afternoon, where former DHL UK boss Muntwyler will be officially appointed.

Elliott announced this morning that it would withdraw its three resolutions from today's AGM and said it was "committed to supporting the board and management on all other motions".

Activist shareholder Elliott, based in New York, had previously asked for a boardroom shake-up at the coach and rail company. The firm wrote to National Express demanding the board vote in three new directors to seek changes to the way the company was run.

The letter from Elliott came days after National Express was told by the department of transport that it had not been shortlisted to run its East Anglian rail network from February next year. The company had run the service for the last six years.

This morning, National Express said the two had "reached agreement that, subject to certain conditions, Elliott will not, inter alia, call a general meeting or seek to agitate against the company, its board or management publicly until after the company's 2012 AGM at the earliest".

National Express said it had now decided to appoint three new independent non-executive directors. At least one of these will have experience in the North American market and one in the continental European market.

All three candidates proposed by Elliott were put forward for roles. Muntwyler was shortlisted and has now been offered a role as an independent non-executive director, with effect from tomorrow (11 May 2011), said the company.

John Devaney, chairman of National Express, said: "National Express has a duty to deliver long-term value to all its shareholders and we are very pleased with the support for our existing strategy shown by so many of our investors in recent weeks. On behalf of the whole board I would like to express my gratitude to the Cosmen family for their help in resolving this complicated situation to everyone's satisfaction.

"I would also like to welcome Chris to the board where his significant experience of the transport and logistics industries will be a considerable asset.

"With this behind us, the board and management can focus wholly on the important task of developing the business."