Arriva in the sights of German rail operator

DEUTSCHE Bahn yesterday confirmed takeover talks with bus and trains firm Arriva in an attempt to create a new European giant.

The German transport operator, which operates such UK services as the Chiltern Railways route between London and Birmingham, said talks over a possible cash offer were "ongoing".

As well as Chiltern, Deutsche is involved in the running of the Wrexham, Shropshire and Marylebone Railway and the London Overground service.

Sunderland-based Arriva ended talks over a possible tie-up with France's national rail operator two weeks ago.