04 August 1998 16:05 [Source: ICIS news]
LONDON (CNI)--UK chemicals company Laporte is in talks to take over Inspec, also of the UK, the company announced Tuesday.
Laporte said it was in "advanced discussions" with Inspec, which were expected to lead to a recommended cash offer of £3.40/share ($5.56/share).
"It is Laporte's intention to seek irrevocable commitments from the board," the statement said. "A further announcement will be made as soon as possible."
Inspec shares jumped 36%, or 87.5pence, to £3.305 on the London Stock Exchange at 14:20 BST (13:20 GMT). Laporte was up 10.5pence or 1.6% to £6.575.
Rumours about consolidation have surrounded the UK speciality chemicals sector for months. Other producers, including Albright & Wilson, Brent International, BTP, Croda, Elementis, Scapa, Victrex and Yule Catto, also saw their shares rise on the Inspec news.
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