British transport group National Express has rejected a proposed £696m takeover approach led by its main shareholder, saying an equity fundraising is now its main goal.

The company, which operates buses in North America and Spain as well as the UK, said it had consulted with major institutional shareholders and had decided the 450p a share proposal – tabled by 18.5 per cent shareholder the Cosmen family and CVC Capital Partners – undervalued the group.