Go-Ahead surges after two takeover approaches

Approaches were made by Australian transport service provider Kelsian Group and by a consortium consisting of Australian bus company Kinetic and Spain's Globalvia Inversiones.

Go-Ahead said it had carefully evaluated the approaches from each party with its financial adviser, Rothschild & Co.

"Following the response by the board of Go-Ahead to their respective approaches, Kelsian and the consortium each submitted a series of revised proposals," it said.

"The most recent revised proposals received from each of Kelsian and the consortium are both at a level which, should a firm offer be made, the board of Go-Ahead would be minded to recommend such a firm offer to Go-Ahead shareholders, subject to the agreement of other customary terms and conditions."

Both parties have been given access to undertake confirmatory due diligence and Go-Ahead said a further announcement will be made if and when appropriate.

At 1435 BST, the shares were up 12% at 1,350.00p.

Under UK takeover rules, both parties have until 11 July to either announce a firm intention to make an offer or walk away.