Engineering consultancy WS Atkins PLC( LON:ATK) soared over 28% higher this afternoon after revealing that it has received an indicative offer from Montreal-based engineering services firm SNC-Lavalin Group Inc (TOR:SNC) pitched at 2,080p a share.
In early afternoon trading, the stock topped the FTSE 250 leader board, up 28.5%, or 439p to 1,979p.
In a statement, Atkins said it has “indicated to SNC-Lavalin that the Possible Offer would deliver value to Atkins shareholders at a level that the Board would be prepared to recommend, subject to reaching agreement on the other terms and conditions of the offer.”
The firm said it is discussions with SNC-Lavalin about the other terms and conditions of the possible offer which is conditional on, amongst other things, diligence and financing.
It added: “There can be no certainty that a firm offer will be made, nor as to the terms on which any firm offer might be made.”
SNC-Lavalin has until May 1 to either make a firm offer for WS Atkins or walk away.