FirstGroup has received a series of unsolicited, conditional acquisition proposals from I Squared Capital Advisors.
A stock exchange statement explained that the private equity firm is looking to acquire the entire issued share capital of the transport group.
The value of the deal is said to be around £1.2bn.
The board and its advisers ate currently evaluating the latest approach, received yesterday evening, which provides a cash component of 118 pence per share and a contingent right to up to a further 45.6 pence per share, based on the outcome of the First Transit earn-out and the net proceeds realised from the Greyhound legacy assets and liabilities.
All previous approaches were all unanimously rejected by the board.
The update notes that FirstGroup shareholders are "strongly advised to take no action in relation to the approach from I Squared", with a further announcement set to be made.
I Squared must make a decision on whether or not to make an offer by not later than 23 June.
FirstGroup shares were trading 5.8% higher this morning at 124.75p - valuing the business at £939m.
Last month, the Aberdeen-based group appointed Graham Sutherland as its new chief executive.
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