text: During April 2009, National Express confirmed that the company was still pursuing talks with the government over possible financial assistance with the franchise, either through a reduction in the premium due or some other form of assistance. During these negotiations, the company had reportedly offered to pay over £100 million to be released from its commitment to operate the franchise. In July 2009, the Department for Transport announced that it would take the National Express East Coast franchise into public ownership at the end of the year after National Express announced it would not invest any further funds into the franchise, effectively declaring it planned to default. In defaulting on the franchise, National Express directly incurred losses of £72 million by forfeiting bonds. Directly Operated Railways took over the East Coast franchise on 14 November 2009.
  The franchise failure sparked public and industry calls for the permanent public ownership of the InterCity East Coast franchise, or even the complete scrapping of the entire franchise system. In November 2009, the government announced that National Express East Anglia would not be granted a three-year extension that it had otherwise qualified for; this was reportedly a result of the East Coast default. However, National Express were subsequently granted an extension until October 2011, followed by another through to February 2012.
  Prospective takeover
  With the company's finances under stress largely as a result of having overbid for the National Express East Coast rail franchise, National Express became a takeover target in 2009. In June 2009, a takeover offer from fellow transport operator FirstGroup was rejected. On 3 September 2009, National Express' largest shareholder, Spain's Cosmen family with 18.5%, and CVC Capital Partners made a takeover offer of £765 million for the company. The Takeover Panel set a deadline of 11 September 2009 for all prospective bids.