Shares in Go-Ahead, which operates London's famous red buses on behalf of the capital's transport authority, jumped 14 percent to £15.50 in late morning deals.
Go-Ahead revealed Monday that it would recommend a consortium takeover from Australian peer Kinetic and Spanish infrastructure investor Globalvia, who are both backed by a Canadian pension fund.
The cash bid, pitched at £15 per share including a special dividend, is worth £650 million ($790 million).
"This is a compelling offer which combines an attractive valuation for shareholders with bright prospects for Go-Ahead's operations and colleagues around the world," said group chief executive Christian Schreyer.
He noted that the group would be "part of a truly global mass transit platform (that) will yield exciting opportunities".
Kinetic and Globalvia have committed "to invest in the decarbonisation and digitalisation of" Go-Ahead, added Schreyer.
The UK company specialises in bus and coach transport in Britain, Ireland, Germany, Norway, Singapore and Sweden, employing more than 27,000 people worldwide.
(AFP)
