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Shares in transport giant FirstGroup have risen sharply after its board confirmed it was considering a renewed takeover bid.

The bid from investment fund I Squared values the firm at a minimum of nearly £900m, with a possible £350m on top of that, depending on future results.

Previous offers from the same company have been rejected by FirstGroup.

The variation in the Aberdeen-based firm's valuation depends on how well those divisions perform.

At 11.00 on Thursday, its share price was up by about 8%, at 128.90.

In a statement, the board said it had received "a series of unsolicited, conditional proposals" from I Squared Capital Advisors, and was evaluating the latest approach.

It added: "FirstGroup shareholders are strongly advised to take no action in relation to the approach from I Squared.

"A further announcement will be made if and when appropriate."

The bus and train operator sold its US divisions in yellow school buses and Greyhound coaches last year for $3.3bn.

Last week, another investment fund bidding to take over Scotland's other major transport firm, Stagecoach, reached the threshold of acceptances by shareholders - meaning the bid has been successful.