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Rivals may be eyeing Arriva
Wearside transport giant Arriva could be facing a takeover battle with a German rival.
The company responded to rumours of a takeover bid with a statement confirming it has received an unsolicited approach about the possibility of an offer.
But it was quick to play down speculation of any move in the short-term, saying only: "There can be no certainty that any offer will be forthcoming. A further announcement will be made when appropriate."
Arriva refused to identify its potential suitor, but stock market sources say Germany's Deutsche Bahn is behind the move. However, that company also is not commenting.
The German company starts operating the Tyne and Wear Metro's trains and stations from April 1 on behalf of Nexus.
Arriva, which started life as Cowies, operates bus and train services in 12 countries in Europe and employs about 150 people at its head office on Sunderland's Doxford International business park.
Shares in the group jumped 12.2 per cent to 650.5 pence, their highest level since November 2008, after yesterday's news, valuing the company at about 1.2billion.
Stock market talk is of an offer of about 700p per share, with two firms in the frame as potential suitors.
The other name in the frame is Singapore-based ComfortDelGro, which runs the Metroline business in London.
Any merger with Arriva, however, would attract the interest of the industry's competition regulator, as a combined company would control more than a third of London's bus services.
Interest in Arriva has been boosted by the collapse of talks which would have seen it become one of the European transport industry's biggest players.
The company confirmed two weeks ago that it had ended negotiations with French state railway group SNCF about a potential tie-up with its Keolis division.
Keolis, which operates 80 urban bus networks on the other side of the Channel, would have been an ideal match with Arriva. The Wearside firm's European division lacks a major presence in France.
A tie-up between the two would have created a transport giant with revenues of almost 6billion.
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Friday 10 February 2012
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