Yes We Can: Rexam admits £4.3bn bid talks with American can making rival
Drinks can maker Rexam is in talks over a £4.3bn takeover bid from US rival Ball Corporation that has the potential to create a dominant force in the industry.
Rexam confirmed it had received an indicative offer at 610p a share from Colorado-based Ball after unusual movements in the FTSE 250-listed company’s share price and media reports linking them to private equity interest.
Shares in Rexam spiked up from around 440p to almost 500p in early trading on Thursday, triggering the company’s announcement of the approach in a statement to the London Stock Exchange. Confirmation of the approach sent Rexam shares as high as 548p.
The potential offer is on a 2:1 ratio of cash to share.
Despite the indicative offer’s 40pc premium to Rexam’s share price before rumours about an approach began to circulate, the company was stressed a deal was far from certain.