French ferry operator SeaFrance could be taken over by Brittany Ferries through a new holding company after negotiations with LD Lines broke down.

Brittany Ferries - which operates five routes to France from Portsmouth, Pool, and Plymouth - confirmed the proposal on Tuesday after the board of directors agreed the bid late last week.

The news came at the same time as Louis Dreyfus Amateurs pulled out of a proposed merger with LD Lines.

The announcement has been much anticipated after it was prematurely made by the French government two weeks ago.

If successful this would result in Brittany Ferries acquiring four or five of SeaFrance's vessels, which would continue in service on the busy Dover-Calais route.

But it is not known if hundreds of jobs will be saved after SeaFrance announced it would make significant redundancies.

It is proposed that the holding company would be set up with €40million with Brittany Ferries taking a 75 per cent stake and SNCF, Seafrance’s parent company, taking a 25 per cent share.

Seafrance was unable to comment on the possible buy-out because the offer was made direct to SNCF. However, Brittany Ferries managing director David Longden, was optimistic.

Brittany Ferries has taken delivery of four new ships during the past six years.

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