Arriva confirms talks with DB

Date: 20/4/2010

Arriva has confirmed that it is at an advanced stage in discussions with Deutsche Bahn (DB) over a takeover deal.

Talks have covered the potential cost of a takeover and the recommended terms for a deal.

According to Arriva, DB is willing to make a cash offer of 775 pence per share, plus a dividend of 18.8 pence per share for the last financial year.

Despite talks reaching an advanced stage, no offer has yet been made.

Such a cash offer would total more than £1.6 billion, making it the most expensive deal in DB's history.

However, due diligence is yet to be carried out by DB and any deal is subject to satisfactory completion of such a review, as well as the unanimous recommendation of the board of Arriva.

Regulatory approval from the German government would also be required before such a takeover could go ahead.