THE French rail company touted as "white knights" set to rescue takeover target Go-Ahead have ruled out the possibility of making a formal bid for the bus and train group.

Via-Cariane, a subsidiary of French state railway group SNCF, said it shared the confidence of the Newcastle-based transport company's board in its "future value and prospects as a major independent UK transport operator".

Go-Ahead is defending itself against a hostile £326m, 650p-a-share, takeover bid by the French consortium C3D.

Only last week C3D extended the timetable for its bid to be accepted, but ruled out the possibility of tabling a higher £402m, 800p-a-share, offer.

Via-Cariane said, following this decision, it did "not currently intend to make an offer for the whole of the issued ordinary share capital of Go-Ahead". But it did reserve the right to make an offer at a future date in the event that a further offer for Go-Ahead is announced by any party.

The group added it intended to acquire an as-yet unspecified stake in Go-Ahead, a move that would make it more difficult for a predator to take over the operator.

The joint venture is also behind the bid to take over the running of the South Central rail franchise from Connex. A decision on this is due to be made by the shadow Strategic Rail Authority on October 25, the same day the extended C3D bid is due to lapse.

If the Go-Ahead joint venture wins the franchise for the South Central railway line analysts have predicted it could boost its share price by as much as 200p.

lManagement at the group's Go Gateshead operation will hold talks with unions this week in a bid to avert Friday's third 24-hour stoppage by bus drivers affecting many services across Tyneside. Drivers rejected an earlier four per cent pay offer.