UK's Gamma Communications in preliminary talks with Oakley Capital, Giacom on possible takeover

* Gamma ​shares rise 8.8% after confirmation of preliminary talks with Epiris and Oakley ​Capital-Giacom consortium

* Oakley ‌Capital-Giacom considering £1bn takeover and break-up of Gamma, per Sky News report

May ⁠15 (Reuters) - British telecoms firm Gamma Communications confirmed ⁠on Friday that ​it is in preliminary talks with private equity firm Epiris, and separately, a consortium led by Oakley Capital and IT service provider ​Giacom on ‌a potential takeover.

Shares of the company closed up 8.8% at 10.18 pounds, valuing the company at nearly 921.8 million pounds ($1.23 billion). Gamma said in April that it was exploring ​a sale and was in discussions regarding possible proposals. It ‌confirmed on Wednesday that Providence Equity Partners was among the parties with which it is ‌in discussions.

Under UK takeover rules, Epiris and the consortium have until June 12 to make a firm offer or walk ​away.

Epiris declined to comment. Oakley Capital and Giacom did not respond to ‌requests for comment.

Sky News, which first reported the talks with Oakley, said that Oakley Capital is partnering with IT service ⁠provider Giacom ⁠for a potential 1 billion pound ‌takeover and break-up of Gamma. Oakley has previously worked with Giacom founder and telecom veteran ​Matthew Riley ​at Damovo and Daisy Group, which ‌merged with Virgin Media O2 last year in a $1.85 billion deal.

Gamma Communications

Oakley