FirstGroup rejects £1.2bn takeover bid from US equity firm

Train operator says proposal from I Squared Capital doesn't provide investors with sufficient certainty'

Britain's biggest train operator FirstGroup has rejected a 1.2bn takeover proposal from a US private equity firm, after its board determined the offer was too low.

The bus and rail company said it had carefully reviewed the proposal from I Squared Capital, which first became public last month, but concluded that the 118p a share cash offer significantly undervalues FirstGroup's continuing operations and its future prospects".