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(Sharecast News) - Vesuvius shares surged on Tuesday after the molten metal flow engineer said it was carefully evaluating a £1.37bn takeover proposal from RHI Magnesita.
Responding to recent media speculation, Veusvius said that since September last year, it has received a series of unsolicited non-binding indicative proposals from RHI. The latest proposal, received on 27 August, was of 551p per share, comprised of 470p per share in cash and 0.28 new RHI shares for every 10 Vesuvius shares.
"The board of Vesuvius is evaluating the latest proposal carefully, including the financial terms and execution risk associated with the proposed transaction, together with its financial and legal advisers, and a further announcement will be made as appropriate," it said.
Under UK takeover rules, RHI has until 27 October to either announce a firm offer or walk away.
At 1030 BST, Vesuvius shares were 22% higher at 455.60p.
Russ Mould, investment director at AJ Bell, said:"Vesuvius is the latest UK stock to be on the receiving end of takeover interest, this time from quoted peer RHI Magnesita.
"RHI first made an approach towards Vesuvius in March, and again in June, before a third attempt in August. This begs the question why this information was not disclosed to shareholders until now. Three approaches in six months shows persistence on RHI's part."
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