Notice N58/99

LONDON STOCK EXCHANGE
20 September 1999


For the attention of the
chairman/senior partner/compliance officer,
all member firms                                                  N58/99

STOCK EXCHANGE NOTICE

DOMESTIC EQUITY MARKET       
STAGECOACH HOLDINGS PLC ORDINARY SHARES OF 0.5p
SHORT SELLING PROVISIONS

Please draw the contents of this Notice to the attention of your Heads of
Trading and Settlement.

1.   Following the announcement on 20 September 1999 that Stagecoach Holdings
plc intends to conduct an Open Offer and an International Offering, the
Exchange will be implementing the provisions of rule A1.7 in relation to the
offers.

Regulation of short selling before pricing

2.   Pursuant to rule A1.7, all transactions of 25,000 shares or more dealt on
Exchange during the period 1 October 1999 to 1 November 1999 inclusive ('the
prescribed period') must be dealt for a maximum of T+5 settlement and must be
for guaranteed delivery.  Member firms should be aware that, as Stagecoach
Holdings plc is traded on the order book, all bargains of 25,000 shares or
more executed on the order book during the prescribed period will
automatically be for guaranteed delivery.

Buying-in

3.   Member firms are reminded that, in accordance with rule 12.2, they may
request the Exchange to buy-in undelivered securities.  

4.   Under rule 12.5(b)(ii), if a transaction was dealt for guaranteed
delivery, a buying-in request may be submitted on or after ISD+1.  Buying-in
will take place immediately on receipt of the buying-in request.  

5.   In addition, under these provisions, even if a transaction of 25,000
shares or more is undertaken during the prescribed period but is not dealt for
guaranteed delivery, a buying-in request may be submitted on or after ISD+1. 
Buying-in will take place immediately on receipt of the buying-in request. 

6.   If a transaction of less than 25,000 shares was not dealt for guaranteed
delivery, a buying-in request may be submitted on or after ISD+5.  Buying-in
will take place 5 business days after receipt of the buying-in request. 

7.   No prior notice will be given to the liable party where buying-in is to
take place immediately.  Buying-in request forms should be submitted to the
Buying-In Office at the Exchange, telephone [phone] (STX 34201).

Rollovers

8.   No roll over trades will be permitted in Stagecoach Holdings plc ordinary
shares to maintain a short position opened between 20 September 1999 and 1
November 1999 inclusive.  Roll over trades will be permitted to maintain a
long position, or to roll over a short position in place prior to 20 September
1999, subject to the requirements of rule 10.2(d).

Additional notifications to the Exchange

9.   The Exchange will publish 'pent up' demand announcements daily during the
prescribed period.  It has been agreed that the Securities and Futures
Authority ('SFA') will provide information for off Exchange business, and this
will be included in the 'pent up' demand announcements.  Member firms are
requested to provide complete information about their off Exchange business to
the SFA in a timely manner.  The SFA will require additional information to be
reported to it under its rule 5-49(11).  A relevant SFA Board Notice will be
issued shortly.

10.  In order to prepare the 'pent up' demand figure, member firms must notify
the Exchange for each business day during the prescribed period of the
aggregate volume of all on Exchange transactions in Stagecoach Holdings plc
ordinary shares dealt for settlement outside of Crest which were unsettled at
the settlement due date (refer Attachment A).

11.  Member firms are also required to notify the Exchange for each business
day during the prescribed period of details of all individual transactions of
25,000 shares or more in Stagecoach Holdings plc ordinary shares dealt on
Exchange for settlement outside of Crest which were unsettled at the close of
business on the settlement due date (refer Attachment B).

12.  The returns required in paragraphs 10 and 11 above must be submitted by
facsimile (0171 920 4526).  Returns for the previous business day must be in
the format shown in the attachments to this Notice and should be sent to the
Exchange by no later than 10.00 hours.  Nil returns are not required.

13.  Beginning on 4 October 1999 and ending 2 November 1999, member firms must
also notify the Exchange of any traditional option open interest in Stagecoach
Holdings plc ordinary shares.  Such returns must be made by facsimile (0171
920 4526) and must specify the aggregate call and put option open interest and
details of any new positions opened on the previous business day.  These
notifications should be sent to the Exchange within the time limit mentioned
in paragraph 12 above.

14.  The Exchange will disclose the aggregate 'pent up' demand figure on its
Regulatory News Service.  The first announcement will appear on 4 October
1999.  The final announcement will appear on 2 November 1999.

Penalty

15.  The Exchange will monitor trading in Stagecoach Holdings plc ordinary
shares during the prescribed period and may take disciplinary action as
appropriate.

16.  During the prescribed period, member firms are not permitted to split
transactions to avoid these provisions.


A E Scott-Bishop
Head of Regulatory Development


Any comments on this Notice should be addressed to:

Short selling provisions       - 0171 797 1360 (stx 31360)
Dealing enquiries              - 0171 797 3666 (stx 33666)
Buying-in                      - 0171 797 4201 (stx 34201)