The shareholders of Arriva Plc said Deutsche Bahn AG to increase its offer price for the proposed takeover. Deutsche Bahn earlier offered Arriva a takeover offer of £1.2 billion for Arriva's Cross Country rail service and its London bus network.

Deutsche Bahn said that it is considering whether or not to increase its bid. The final decision is yet to be taken by the bank.

Two of the top ten shareholders in Arriva told Deutsche Bahn to offer more for the takeover as the shares of Arriva are currently trading more than the offer price.

The share of Arriva closed at 708 pence yesterday while Deutsche Bahn offered 700 pence per share earlier.

Deutsche Bahn formally confirmed yesterday that it has interests in Arriva.

"Deutsche Bahn confirms that it made an approach to Arriva regarding a possible cash offer. Discussions are ongoing," the company said.

Arriva is the main bus operator in Merseyside. Besides its Country rail service and London bus network, Arriva also has a train network in Wales and buses in the South East and Midlands.