British Gas owner Centrica plc (LON:CNA) shares rallied today following a media report that it could be a takeover target.
The utilities supplier has attracted the interest from a number of bidding parties, according to Zak Mir on the Wallstreetwires website.
Among the prospective bidders is a consortium of Kuwait, Singapore and Canada infrastructure-focused buyers and their advisors, Mir said. Another potential is a strategic buyer with its advisors.
Centrica is expected to fetch up to 300p per share in offers.
Shares gained 3.42% to 208.80p in late afternoon trading.
Worries about Centrica's profits being hit by a proposed energy cap were soothed after the government watered down its plans to knock £100mln off bills for 17 million househoulds to instead protect just 2.2 million "vulnerable" customers on the poorest-value tariffs.
Reports of possible acquisition of Centrica come in the wake of US-based Vantiv Inc.'s (NYSE:VNTV) takeover of Worldpay Group plc (LON:WPG).
Worldpay, Britain’s largest payments processor, announced on Wednesday that it had agreed to accept a 385p per share offer, or £7.6bn.
A weaker pound, driven by last year’s Brexit vote, has stoked interest in a number of UK-based firms for possible takeover bids.
READ: Worldpay takeover may be first of many as US firms go Brexit bargain hunting
Rupert Murdoch’s 21st Century Fox Inc (NASDAQ:FOXA) has made a US$15.2bn offer to buy UK broadcaster Sky plc while consumer goods giant Unilever plc (LON:ULVR) rejected a US$143bn takeover approach from Kraft Heinz Co. (NASDAQ:KHC) in February.
AJ Bell has said it expects ITV plc (LON:ITV) and Burberry Group plc (LON:BRBY) could become takeover targets in coming months as international firms take advantage of cheap deals in the UK.