Can maker Ball in talks to purchase rival Rexam
Rexam is in talks about a possible sale to US competitor Ball that may value the UK beverage-can manufacturer at about £4.3bn (€5.7bn).
Rexam shares jumped to an eight-month high following the news.
About two-thirds of the payment would be in cash and the balance in new Ball shares. The offer is 36pc higher than Rexam's closing stock price on Wednesday.
The deal would be a record for a metal or glass-container maker, according to data compiled by Bloomberg, and is the latest sign of consolidation in the packaging industry.
Rexam, which makes more than 60bn cans a year and supplies drinks companies including Coca-Cola and brewer Anheuser-Busch, plans to increase output in the Middle East, Central America and Southeast Asia.
Although the acquisition of Rexam would make strategic sense for Ball, the companies could face antitrust concerns in several regions, according to BMO Capital Markets.