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@GA2G
Glad you're okay BDW. I think the driver had a change of heart after talking to some other bus-drivers about it, or it was a direct recommendation from her depot-supervisor. I've had some dealings with bus drivers and have found that a strong response is the only one that matters. A bus-driver was sacked after I reported him on one ocassion, and on the ocassion, the bus-driver was left in no uncertain terms that their driving was dangerous, and that cyclists aren't there to be intimidated by them.
My advice would be to take legal action. You'll get a pay-out, and the bus company will harden their procedures and maybe their training, in regards to how drivers should drive, when near cyclists...ie., politely and thoughtfully.
Don't take her offer of money please. It will make other bus-drivers think that an accident with a cyclist might be worth about 40 quid, instead of their jobs at worst, PLUS legal fees and a payout.