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)
Andy Burnham (Photo by Temilade Adelaja / POOL / AFP via Getty Images) 
