STAGECOACH, already Britain's second biggest bus company and owner of one train franchise, yesterday announced a £475 million takeover bid for rival Porterbrook, which controls about a third of the national fleet.

If the deal is approved, it will be the first example of consolidation in the privatised industry and will mean Stagecoach will both run trains and lease rolling stock to its rivals. The Office of Fair Trading must now decide whether to refer the bid to the Monopolies and Mergers Commission.