Alpha FMC surges as Bridgepoint proposes 505p a share takeover

Alpha FMC announced on 1 May that it had received a non-binding indicative takeover offer from Bridgepoint.

Responding to earlier press speculation on Wednesday, it said Bridgepoint had made a proposal at 505p per share in cash, which represents a premium of 50.7% to the closing share price on 30 April.

"Having carefully considered the terms of the proposal with its financial advisers, the independent directors of Alpha FMC have concluded that they would be minded unanimously to recommend the proposal to Alpha FMC shareholders should a firm intention to make an offer pursuant to Rule 2.7 of the Code be announced on such financial terms, subject to the finalisation of documentation and discussions, which are advanced," it said.

Under takeover rules, Bridgepoint has until 1700 BST on 20 June to either announce a firm intention to make an offer or walk away.

"There can be no certainty that any firm offer will be made for Alpha FMC," the company said, adding that a further announcement will be made when appropriate.

At 1210 BST, Alpha FMC shares were up 22% at 477.85p.