By Esha Vaish
(Reuters) - Beverage can maker Rexam Plc (L:REX) said it was in talks to be potentially bought by U.S. rival Ball Corp (N:BLL) in an offer that values the company at about 4.29 billion pounds ($6.54 billion).
The offer from Ball Corp, which like Rexam controls about 21 percent of the market for beverage cans, values Rexam at 610 pence per share, a 36 percent premium to the stock close on Wednesday.
Rexam shares rose as much as 29 percent to 575.5 pence on Thursday. They had risen 6 percent earlier after the Independent and the Times reported there were rumours that Rexam was a potential takeover target for U.S. private equity firms.
Rexam, which makes aluminium cans for companies such as Coca-Cola Co (N:KO), Anheuser-Busch InBev (BR:ABI) and Heineken NV (AS:HEIN), said Ball Corp had till March 5 to make a firm offer or walk away.
Ball Corp could not be immediately reached for comment. The company on Thursday reported fourth-quarter results, but made no mention of the potential acquisition in the statement.
Rexam said Ball Corp's proposal comprised two third in cash and the rest in stock. Ball Corp's shares rose marginally to $66.20 in thin premarket trading.
While Rexam and Ball Corp each controlled about 21 percent of the global market in 2014, Crown Holdings Inc (N:CCK) held a 19 percent share, according to research firm Vertical Research Partners.
Jefferies analyst Sandy Morris had expected a private equity bidder to emerge, as industry consolidation would be difficult due to antitrust issues.
Rexam statement did not comment on any potential antitrust issues.