Payment processor Worldpay Group PLC (LON:WPG) soared to a new all-time high on hopes of a bidding war as it confirmed it had received two takeover approaches.
In a statement, the former Royal Bank of Scotland subsidiary said it had received “preliminary approaches” from US card purchase processor Vantiv and JPMorgan Chase Bank.
Neither of the possible bidders gave their consent to Worldpay’s statement, it said.
Worldpay shares soared 28% to 409p following the statement as investors speculated a bid battle could be in the offing.
Analysts suggest while Vantiv might make a good strategic fit with Worldpay, the likes of Amazon, Apple and Google will also be taking a keen interest as they look to build their own mobile payment operations.
Worldpay, which was valued at £4.8bn when it floated in 2015 after its split from RBS following the financial crisis in 2009, is a unique asset suggested Mediobanca.
Profits were £264mln last year, up from £19m in 2015.
Who is Vantiv
Vantiv has been growing rapidly through small acquisitions, but a deal for Worldpay would mark a serious change of pace and make good strategic sense said analysts.
Worldpay has 400,000 merchants in 126 currencies on its books with an advanced e-commerce platform used by the global giants.
Vantiv by contrast is largely US-focused and slightly larger in market cap terms and consolidating its position through the acquisition of smaller US rivals.
JP Morgan is one of the best known US investment banks, but even it might struggle to compete if the tech giants do decide to enter the bid battle.
Worldpay departure would diminish FTSE 100
Chris Beauchamp, chief market analyst at IG, added: “Worldpay only joined the FTSE 100 in 2015 and was a welcome addition to an index that had become overpopulated by banks and miners.
“Its departure would mark a step backward for the UK's top-line index, although I'm not entirely sure many ordinary investors even noticed it was there.”
-- adds detail--