TRANSPORT company Arriva, currently in a pay dispute with its drivers, could become the subject of a take-over bid.

City experts believe both Sunderland-based Arriva and Go-Ahead, which operates trains and buses, face being taken over by the end of the year.

Several private companies have looked at Arriva this year and one is thought to be considering a take-over bid.

Arriva is the UK's third-largest operator of local bus services and has a fleet of 8,000 vehicles. It also owns a car dealership network and recently bought the MTL rail group which operates Merseyrail Electrics and Northern Spirit.

Arriva is currently dealing with a strike by its drivers over pay and conditions.

All-day strikes on Fridays have been held for the past few weeks with demonstrations outside some depots.

A decision has now been made by the striking drivers to stop over-time work.