Coach USA is the biggest charter and sightseeing coach company in the United States but it has been hit by a downturn in tourism.

Stagecoach said the money raised from selling the west and south central regions of the business would be used to cut its debt.

The news pleased investors and shares in Stagecoach jumped 4 pence to 61p, their highest level this year.

Still for sale

"We have now completed or agreed terms for approximately two-thirds of the sale programme at Coach USA," said chief executive Brian Souter.

"We are well on track to complete our restructuring ... within the timescale we set out six months ago."

Stagecoach said in December it would overhaul Coach USA, and sell or close non-core parts of the unit over the following 12 to 18 months.

The business made a loss of �524m in the six months to the end of October.

Stagecoach has already sold the New England arm of the coach operation as well as taxi businesses in Kansas City, Long Island and Indianapolis.

The company said it was still looking for buyers for its south east and Canada regions as well as its remaining taxi businesses.