Rexam share price jumps 25 per cent on £4.29bn takeover talks with US-based rival Ball Corporation
Rexam's share price soared today after the can maker said it was in talks over a potential bid by US rival Ball Corporation in an offer valuing the company at £4.29bn.
FTSE 250-listed Rexam's share price leapt as much as 29 per cent to 576 pence per share in early afternoon trading.
The announcement came after media reports that the company was being eyed for a potential takeover by a US private equity firm.
Rexam, which makes cans for the likes of Coca Cola, said Ball potential offer is two-thirds cash and one-third in the company's shares.
"Discussions on other matters are continuing and there can be no certainty any formal offer will be forthcoming, or as to the terms of any offer," Rexam said in a statement to the London Stock Exchange.
Ball Corp has until March 5 to make a firm offer or walk away.
Rexam closed up 5.9 per cent to 474 pence this afternoon in London.
(Source: Yahoo Finance)