THG PLC (LSE:THG)'s shares surged over 40% after it confirmed receiving a preliminary bid approach from Apollo Global Management (NYSE:APO) continuing the recent pick up in M&A activity in London.
THG - which was responding to press speculation - said it had received a "highly preliminary and non-binding indicative proposal" from the private equity firm.
Apollo has May 15 to make firm up a proposal under takeover rules.
The news adds to the flurry of activity in London in recent days which has seen a number of companies confirm bid approaches.
Private equity firms are leading the way with Apollo itself engaged in ongoing talks to buy John Wood, while there have also been approaches for Network International from CVC and Dechra Pharmaceuticals from EQT.
Victoria Scholar at interactive investor said: "There is a sense among international investors that the UK is ripe with takeover targets."
"The recent rebound for the pound suggests opportunistic buyers need to make the most of sterling’s weakness before it appreciates further and is too late as the FX discount subsides," she added.
THG has had a chequered history since its stock market debut in 2020 with shares down more than 80% since its flotation - before the bid approach.
Last week chief executive Matt Moulding said he 'wouldn't recommend' listing on the London Stock Exchange.
News of the approach prompted broker Liberum to upgrade its stance to 'buy' from 'hold', saying it highlights "just how cheap the shares are".
THG is still significantly below a some-of-the-parts value of 220p, said the broker, and even if there is no deal there are several positive signals on cash flow.
Shares soared 41% to 93.04p.
-- adds Liberum comment--