Shares in drinks can manufacturer Rexam (REX) climbed 25 per cent after the company confirmed that US packaging supplier Ball Corporation is mulling a takeover bid.
The world's second-largest beverage can maker had already seen its stock rise following media speculation that US private equity firms were interested in the company. In response, the board of Rexam confirmed that it was instead in discussions with Ball Corporation, a Colorado-based company famous for producing glass canning jars.
According to a statement, the proposal values Rexam at 610p a share, based on a consideration of about two-thirds in cash and one-third in new Ball shares. Discussions are said to be ongoing, and, as ever, there is no certainty that a formal offer will be forthcoming.
Rexam, which makes aluminium cans for companies such as Coca-Cola and Heineken, issued a profit warning in November as a result of rising aluminium prices and energy costs in Brazil. The company has since been busy expanding its operations, with two acquisitions in January boosting its exposure to the Middle East and central America.
