ARRIVA, Merseyside’s main bus operator, is a takeover target.

The Sunderland-based firm which provides about 60% of all Merseyside’s bus services confirmed late yesterday that it had received an approach.

Arriva refused to reveal the identity of the would-be suitor but it is believed to be German transport operator Deutsche Bahn after rumours emerged on Tuesday following a two per cent jump in Arriva shares.

An Arriva statement said: “Arriva confirms that it has received an unsolicited approach from a third party about a possible offer for the company.”

Industry sources believe the approach values Arriva at around £1.2bn.

Arriva – which runs UK bus and rail services including the CrossCountry and Arriva Trains Wales franchises 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, owned by French national rail operator SNCF.

Deutsche Bahn has been making growth plans, but there are thought to be other potential acquirers of Arriva in the frame, such as the owner of the Metroline bus business in London, ComfortDelGro, which is based in Singapore.