Rexam rockets on £4.3bn proposal from Ball Corp

Rexam's share price surged on Thursday after the beverage can maker confirmed rumours that it has been approached by Ball Corporation.

Rexam's shares were up nearly 21% at 539.5p by the close after the company said it had held talks with Ball Corporation over a cash-and-shares takeover proposal.

Ball Corporation, the American group which provides metal packaging for beverages, food and household products, has proposed a acquisition which values Rexam at 610p per share, or £4.3bn.

"Discussions on other matters are continuing and there can be no certainty any formal offer will be forthcoming, or as to the terms of any offer," Rexam said.

Earlier speculation suggested that Rexam had attracted the interest of a number of US private-equity firms.