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The TalkTalk logo outside the British telecommunications company’s headquarters in west London, England, on October 23, 2015.
leon neal/Agence France-Presse/Getty Images
Shares in TalkTalk Telecom Group surged on Thursday, after it revealed talks on a takeover bid by its second-largest shareholder.
TalkTalk TALK, +19.86% shares rose 20% to 99.95 pence, after saying Toscafund Asset Management made a conditional offer valued at 97 pence per share. One of the conditions is that the largest shareholder, founder and executive chairman Charles Dunstone, accept the offer. According to FactSet data, Dunstone holds just under 30%, compared with the 29% stake Toscafund controls.
The bid from Toscafund is lower than the 135 pence per share approach it reportedly made last year.
TalkTalk has weathered the COVID-19 pandemic fairly well, with the company reporting adjusted revenue easing to £358 million from £387 million in its June-ending fiscal first quarter. It expects stable to higher adjusted operating profit growth for the fiscal year.
In an upbeat day for markets, the FTSE 100 UKX, +0.65% rose 0.6%. Engine maker Rolls-Royce RR, +20.65% continued to bounce off lows, jumping 19%, though the stock is still nursing a 75% loss on the year.
British Airways owner International Airlines Group IAG, +9.33% jumped 9%.
Network International NETW, +5.67% rose 6% on a JPMorgan Cazenove upgrade to overweight from neutral, which expects the payments company to beat expectations when it reports third-quarter revenue next week. Concerns around spending for the United Arab Emirates, in particular, will be alleviated, the broker said.
