WILTS and Dorset Bus Company has been acquired by Go-Ahead Group Plc in a £31.6 million takeover.

The news was broken to staff of the Poole-based company yesterday, and the new management team installed immediately following the announcement.

W & D's managing director, Hugh Malone and operations director Andrew Bryce have opted for retirement and will be replaced by Alex Carter and Andrew Wickham respectively.

The train and bus operators, who signed a new South Central rail franchise agreement with the Strategic Rail Authority in May, acquired Wilts and Dorset with Go-Ahead's existing debt facilities.

This new acquisition by the Newcastle-based transport company will enhance its southern expansion, which covers, Dorset, Wiltshire and South West Hampshire.

However the company says it is not planning to change the way the service is run.

The group's chief executive, Martin Ballinger said: "We are delighted to have acquired Wilts and Dorset which is a profitable and high quality bus business with good growth potential.

"We look forward to working with the local authorities to enhance the business further for the benefit of passengers, staff and shareholders."

The takeover has prompted some anxieties among staff at Wilts and Dorset, who operate around 350 buses and employ 800 staff.

However Eric Horniblow, passenger transport manager for Dorset County Council, tried to allay these fears: "I suppose that there is always an element of uncertainty when any company is taken over by another bus company. But the company concerned has got a good track record when it comes to maintaining routes.

"There have been bus companies that have a reputation for taking over companies and stripping them of their assets but Go-Ahead is a proper bus company which is dedicated to providing bus services.

"Given their track record as an operator elsewhere in the country we are not unduly alarmed. But the move is tinged with sadness because we have had a good working relationship with Wilts and Dorset for many years."

W & D generated an operating profit of £4.4 million and a turnover of £25.8 million last year.