Partner Article

Takeover talks roll on

TRANSPORT group Arriva yesterday confirmed that takeover talks with the German firm which operates the Tyne and Wear Metro are at an advanced stage.

The Sunderland-based plc made the announcement in reaction to intense press speculation that it is close to being acquired by Deutsche Bahn.

Arriva said: “The Board of Arriva notes the recent press reports about its discussion with Deutsche Bahn and the recent movement in its share price and confirms that it is in advanced discussion with Deutsche Bahn about the terms of a possible recommended cash offer.

“Deutsche Bahn has indicated that, subject to the satisfaction of the conditions set out below, it is willing to make an offer of 775 pence in cash for each Arriva share and that, in addition, Arriva shareholders would be entitled to receive the proposed final dividend of 18.8 pence per Arriva share in respect of the financial year ended 31 December 2009, expected to be paid on 10 May 2010.”

It is understood the bid from the state-owned German transport giant will value Arriva at around £1.6bn.

Deutsche has reportedly carried out due diligence and its board will meet on Wednesday to approve the offer.

This was posted in Bdaily's Members' News section by Ruth Mitchell .