After Wednesday's excitement, shares in Tate & Lyle PLC (LSE:TATE) succumbed to a mild bout of profit-taking in early trading.
Late in yesterday's session, the Financial Times revealed Advent International is preparing a potential takeover bid for the food ingredient company.
While no formal offer has been made, it is expected to exceed Tate & Lyle's £2.8 billion market value.
After the news broke, its shares surged by 12.6%, raising its market value to £3.2 billion.
Advent’s move follows a rise in takeover interest in UK firms, driven by lower valuations and improved dealmaking confidence.
Tate, which shifted focus from sugar to healthier food ingredients, is currently acquiring CP Kelco, a speciality gums provider, for $1.8 billion.
Deutsche Bank in a note to clients mulls whether that deal will go ahead if Advent does swoop. The odds are it will, it concludes.
DB rates the shares a 'buy' up to 850p. In the first 20 minutes of trading the stock was down 1.7% at 793.5p.