Arriva receives approach about possible takeover

"There can be no certainty that any offer will be forthcoming. A further announcement will be made when appropriate," the company said in a statement.

Shares in Arriva were 12.2 percent higher at 650.5 pence by 10:15 a.m., their highest level since November 2008, valuing the company at around 1.2 billion pounds.

Arriva's shares rose more than 3 percent on Tuesday on market talk of a 700 pence per share bid for the company, traders said.

Arriva two weeks ago ended early-stage talks with French state railway group SNCF over an equity tie-up with its transport unit Keolis.

Earlier this month Arriva, which operates transport groups in 12 different countries around Europe, said 2009 pretax profit fell 19 percent to 121.7 million pounds.

(Reporting by Rhys Jones; editing by Victoria Bryan)