FirstGroup surges on report of PE interest in US operations

Transport operator FirstGroup surged on Monday following a report that its US operations have attracted interest from several major private equity firms.

According to The Sunday Telegraph, Canary Wharf owner Brookfield, Apollo Global Management and KKR are among a group of potential suitors for FirstStudent and FirstTransit.

The Telegraph cited sources as saying that FirstGroup’s financial advisers have restarted a sales process in recent weeks and attracted "significant" private equity interest.

I Squared Capital, the owner of Irish energy firm Energia, was also understood to have registered its interest.

At 0845 BST, the shares were up 14.2% at 45.42p.