By Ian Walker and Rory Gallivan 

LONDON--U.S. packaging group Ball Corp. is in talks about buying U.K.-based rival Rexam PLC, a move that would combine two of the world's biggest can makers.

Rexam today said the two companies are discussing a possible share and cash offer worth about 610 pence a share for Rexam, that would value the U.K. company at more than GBP4 billion ($6 billion).

Shares in Rexam, whose customers, like Ball's, include Coca-Cola Co. and PepsiCo Inc. jumped by more than a quarter to 567 pence after it confirmed the talks.

Any offer will be two thirds in cash and one third in new Ball shares, Rexam said, cautioning that there is no certainty any offer will be made or what the terms of any deal may be.

The U.K. Takeover Panel has set a deadline of 1700 GMT on March 5 for Ball to either make an offer or withdraw.

Rexam and Ball, together with Philadelphia-based Crown Holdings Inc., account for more than 60% of global beverage can volumes, and close to 90% in Europe, North and South America, according to Rexam's website.

A combination of Rexam and Ball would create regulatory issues due to their high market shares in territories such as the U.S., Europe and Brazil, but these a likely to be surmountable, said Jefferies analyst Sandy Morris.

Ball Chief Executive John Hayes declined to discuss the proposed transaction on the company's regularly scheduled quarterly conference call Thursday, citing U.K. regulatory restrictions. The move will also raise speculation the company could opt to sell or spin off its $1 billion aerospace business, which makes satellites and other space equipment. The shares ended up 8.9% at a record $72.03, valuing the company at $9.9 billion. Broomfield, Colo.-based Ball employs 14,500 people.

Rexam, which has around 8,000 employees, reported sales of GBP1.9 billion for the first half of 2014. The company is focused on drinks cans after selling its health-care containers and closures business to Berry Plastics Group Inc. last year for $135 million.

Doug Cameron contributed to this article.

Write to Ian Walker at ian.walker@wsj.com and Rory Gallivan at rory.gallivan@wsj.com

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