By Ian Walker
LONDON--Chime Communications PLC (CHW.LN) shares rose 26% in
early trade Thursday after the company confirmed it is in advanced
talks with Providence Equity Partners LLC and Martin Sorrell's WPP
PLC (WPP.LN) over a potential cash offer worth about 370.23 million
pounds ($576.8 million).
The international communications and sports marketing group
added that an independent committee of the board has been convened
and is in discussions with the consortium. However, it cautioned
that there is no certainty the consortium will proceed to make an
offer for Chime.
At 0730 GMT, shares were 72.5 pence, or 26% higher, at 347
pence.
Any offer would comprise 365 pence per share, plus an interim
dividend for the current year of 2.53 pence per share. This price
is a 34% premium to Chime's closing share price of 274.5 pence
Wednesday.
The U.K. takeover panel has set a deadline of 1600 GMT on Aug.
26 for the consortium to either make an offer or withdraw.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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