LONDON - Shares of the Finnish company Metso rose nearly 20 percent on Tuesday after it confirmed that it had been approached by a Scottish rival, the Weir Group, about a potential takeover.
Metso, which provides services for the mining, construction and oil and gas sectors, said in a statement on Tuesday that it had received an “unsolicited†bid from Weir about combining the two companies.
“Metso occasionally receives these types of proposals and, in case the board of directors of Metso considers them serious, evaluates such proposals,†the company said. “Contrary to market rumors, Metso is currently not and has not been engaged in discussions with Weir although it is in the process of considering Weir’s proposal.â€
The Times of London reported in its editions on Tuesday that Weir was willing to pay as much as 30 euros, or about $41.38, a share for Metso.
Shares of Metso were trading up 20.4 percent, at €28.58, in Helsinki on Tuesday morning. That would value the company at about €4.3 billion.
In a separate statement on Tuesday, Weir said it had made an “all-share merger proposal†to Metso’s board and that any transaction, if consummated, would be subject to shareholder approval.
“The board of Weir believes that there is a strong strategic rationale for bringing the two companies together, which would offer the opportunity for significant efficiencies and synergies, creating significant value for all shareholders,†the company said.
Weir said it envisioned that the merged entity would be listed in both London and Helsinki.
Metso, created by a merger in 1999, reported revenue of €3.86 billion last year and employs about 16,000 people.
Weir, which began in Glasgow in 1871, posted 2013 revenue of 2.43 billion pounds, or about $4.04 billion, and employs more than 15,000 people in 70 countries.
