Arriva confirms suitor's takeover approach

Bus and rail firm Arriva yesterday confirmed it had received a takeover approach amid reports of interest from a European rival.

Shares in Arriva raced ahead following the statement from the group, which comes after rumours emerged German transport operator Deutsche Bahn was eyeing the firm for acquisition.

But Arriva did not reveal the identity of its suitor, saying only that it had received an "unsolicited approach from a third party".

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Sunderland-based Arriva – which runs UK bus and rail services including the CrossCountry franchise as well as a sizeable mainland Europe operation – is said to have been left vulnerable to takeover interest after recently ending merger talks with Keolis, which is owned by French national rail operator SNCF.

Deutsche Bahn has also been making growth plans, reportedly holding talks with Eurotunnel about running high-speed trains through the Channel Tunnel to link Europe's two main financial centres, Frankfurt and London.

There are thought to be other potential acquirers in the frame, such as the owner of the Metroline bus business in London, ComfortDelGro of Singapore.

However, any tie up between the two could attract the attention of regulators, given that Arriva also has a significant London bus operation.

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