Global infrastructure investment fund I Squared Capital Advisors has announced that it has “no intention” of making a formal takeover offer for UK ground transport operator FirstGroup.

US-based I Squared has made a series of “unsolicited” offers to buy FirstGroup over the past three months, including a final proposal of £1.35 per FirstGroup share on Monday (15 August). But all of I Squared’s offers have been rejected by FirstGroup’s board for being too low.

After its final proposal was turned down, I Squared announced to investors on Tuesday (16 August) that it “does not intend to make an offer for FirstGroup”.

FirstGroup currently operates four UK train networks: Avanti West Coast, Great Western Railway, South Western Railway and TransPennine Express. It is also the second largest bus operator in the UK.

Following I Squared’s announcement, FirstGroup said in a statement: “The board, having carefully evaluated the proposal together with its advisers, concluded that the cash component significantly undervalues FirstGroup’s continuing operations and its future prospects, and the contingent value does not provide shareholders with sufficient certainty.

“FirstGroup is a cash generative, well capitalised business with a significantly derisked balance sheet and strong positions in the UK bus and rail markets and, with new chief executive officer Graham Sutherland in place, has a resilient and robust platform from which to develop and maximise both organic and inorganic opportunities that exist for growth in the core business.”