But perhaps extending the 23, to compete with stagecoach, was to try and bring in extra income, to stem the losses, and turn preston bus into a profit making firm. Of course, they should have known that Stagecoach would probably retaliate, putting them back to square one.
One other possible response from stagecoach; in 2013, they reduced the frequency on their Moor nook service to every 20 minutes, whereas preston bus, using a different route, kept theirs at 10 minutes. I wouldn't be surprised if stagecoach upped their frequency, in the long term.
Lastly, when stagecoach were forced to divest preston bus in 2009, the competition commission ruled preston bus was not a failing company. If it's making a £200,000 loss currently, and if rotala wished to sell to stagecoach, stagecoach would use the same argument again.
And there is a legal precedent to an operator having to sell something, to satisfy competition authorities, only to later buy it back, and be allowed to keep it. In 1996, stagecoach had to sell huntingdon depot, of stagecoach east, to satisfy competition concerns, after buying cambus, only to buy the depot back in 2008, and be allowed to keep it. So, if rotala sold preston bus to stagecoach, I'd say that the competition and markets authority would be obliged to allow the deal to go through with no inquiry.