DB ready to take over Arriva

Deutsche-BahnThe largest of the state owned transport conglomerates D Bahn is all set to mark a largest acquisition in the passenger market. It now seems certain for D Bahn's £1.54bn offer to win the race.

As per the sources Arriva was in advance discussion with the company over a 775p per share cash offer, a 34 per cent premium to Arriva's 579.5p share price on March 16. The company sources revealed that Arriva shareholders would also be entitled to 18.8p per share proposed dividend.

Arriva generates 52 per cent of its revenue from operations including Welsh trains, CrossCountry rail franchise and London buses with 42,000 employees. It owns many rail franchisees in Germany.

D Bahn, which owns UK's Chiltern Railways Franchise, was mainly focused on freight and logistic companies including EWS, the UK's largest rail freight operator bought in 2007. This year on April 1, the company took over operations of the Tyne & Wear Metro in North-East England.

DB is expected to come up with approval at its meeting to be held tomorrow.