FirstGroup said that until it was notified by the DfT last night, it had no indication there were any problems with the franchise process.
Until this point we had absolutely no indication that there were any issues with the franchise letting process and had received assurances from the DfT that its processes were robust and that it expected to sign the contract with FirstGroup soon.
We are extremely disappointed to learn this news and await the outcome of the DfT's inquiries.
The DfT has made it clear to us that we are in no way at fault, having followed the due process correctly.We submitted a strong bid, in good faith and in strict accordance with the DfT's terms.
More top news
A cat rescue charity in Ebbw Vale is worried it won't be able to find homes for its 70 cats.
A teenager is calling on the Welsh Government to lower the age of cervical screening for women - after she was diagnosed with cancer.
Over 100,000 fans descend on Cardiff next week for One Direction concerts leading to a "Full Closure" of the city centre on both nights.