The Takeover Panel has granted FirstGroup an extension of the deadline for I Squared to declare its firm intent to table a takeover bid or walk away.
In a statement, FirstGroup said talks between the two companies were ongoing and the extension until 1700 BST 18 August would allow them to continue to progress.
The new deadline could be extended further if the Takeover Panel agreed.
Shares of FirstGroup closed 1.48% lower at 133.0p.
