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(Sharecast News) - Tate & Lyle surged on Thursday as it confirmed it is in talks with US rival Ingredion about a possible 2.7bn takeover.
Responding to press speculation, Tate said that under the proposal - which followed a number of earlier approaches from Ingredion - its shareholders would get 615p per share. This includes 595p per share in cash and the right to receive a final dividend of up to 13p per share and an interim dividend of up to 7p.
"The board and Ingredion are in discussions regarding the proposal," it said, adding that there can be no certainty that any offer will be made, nor as to the final terms on which any offer might be made.
A further announcement will be made when appropriate, the company said.
Confirming the proposal in a separate statement, Ingredion said it "believes a potential transaction would deliver significant benefits to customers, consumers, employees and Ingredion shareholders".
Under UK takeover rules, Ingredion has until 1700 BST on 11 June to make a firm offer or walk away.
At 1627 BST, Tate shares were up 47% at 551p.
See latest RNS on Investegate
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