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(Sharecast News) - Shares in Union Jack Oil flew on Monday, after the AIM-listed energy company confirmed it had received a takeover approach from Reabold Resources.
In a brief statement, Union Jack said British investment firm Reabold - which specialises in European gas assets - had sent it a non-binding indicative offer at the start of the month regarding a possible all-share offer.
Due diligence was now underway while discussions continued, although Union Jack acknowledged there was no certainty any offer would be forthcoming or proceed. Potential terms were not disclosed.
That did not stop the shares surging, however, and by 0830 BST the stock had put on 13% at 3.8p. Reabold was largely unchanged at 88.2p.
Under City rules, Reabold now has until 1700 BST on 13 July to make a firm offer or walk away.
Bath-based Union Jack specialises in onshore hydrocarbon production and exploration, with assets in the UK and US.
Reabold has yet to comment on the approach.
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