(Alliance News) - DWF Group PLC on Monday confirmed a Bloomberg report that it was in talks about a potential takeover with Inflexion Private Equity Partners.
The Manchester-based legal business said the potential offer would be for a total consideration of 100 pence per share. This could comprise 97p in cash, and a 3p special dividend for the six months to April 30.
The total consideration is a 53% premium to Friday's closing price of 65.5p.
Shares in DWF jumped 31% to 85.75p each in London on Monday morning.
Should a firm offer on such terms be made by Inflexion, DWF said it would be "minded to unanimously recommend" it to its shareholders.
The offer would be subject to certain terms and conditions, DWF noted.
"Discussions between DWF and Inflexion are ongoing and there can be no certainty that an offer will be made, even if the pre-conditions are satisfied or waived," the company said.
Under UK takeover rules, Inflexion has until August 7 to announce a firm intention to make an offer or announce that it does not intend to make an offer.
By Elizabeth Winter, Alliance News senior markets reporter
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