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BUZZ-Stagecoach, FirstGroup: divergent fortunes

Reuters - UK Focus

** Rail contract win puts Stagecoach on course for best one-day pct move in 4 yrs, up 8.2 pct at an eight-month high & sitting at top of STOXX Europe 600

** Britain said it would award a contract to run trains between London & Scotland to a Stagecoach & Virgin partnership

** Duo chosen over other two shortlisted bidders FirstGroup & JV between Keolis & Eurostar

** FirstGroup (LSE: FGP.L - news) among biggest losers across Europe, down 2.6 pct & taking its loss for yr to about 15 pct; Stagecoach by contrast up almost 5 pct this year

** This is latest in a string of setbacks for FirstGroup in its rail business this year

** But following weekend press report suggesting the contract was going to Keolis/Eurostar, FirstGroup share price already largely reacted, analysts say. Stock down over 10 pct this week (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)