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
As Wales gets involved in the country's biggest sports day - Our Olympians have been getting in on the action.
ITV switched off all of its channels for an hour on Saturday as part of a national sports day event.
A fine start to the weekend with some sunshine, although this will slowly turn hazy during the day as cloud builds.