Hull-based phone and broadband company KCOM Group PLC (LON:KCOM) saw its shares surge on Monday after it received a £563mln takeover offer from wholesale investment fund, Macquarie European Infrastructure (MEI).
The group, which is headed by ex-BT Group PLC (LON:BT.A) CEO Graham Sutherland, last month received a takeover offer from the Universities Superannuation Scheme (USS), a £50bn UK pension scheme for universities, of 97p per share, valuing KCOM at around £505mln.
However, on Monday the firm said it had withdrawn its recommendation for the USS offer in favour of the bid from MEI, which at 108p per share, was an 11.3% premium on its close price on Friday.
KCOM has been struggling over the last 12 months, having cut its interim dividend in half in November amid falling revenues and ballooning debts.
In mid-morning deals on Monday, KCOM shares shot up 12.6% to 109.2p, a 1.1% premium to the MEI offer price, showing that the market may be expecting another bid for the group.
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