Tate & Lyle plc (LSE:TATE) threatens to become the latest big business to quit the London stock market after reports that a US private equity giant is preparing a takeover bid. Shares in the ingredients maker jumped more than 11% after it was reported that Advent International, L.P. was lining up an offer that would value the company at more than its £2.8 billion market valuation. The US-based buyout firm is in the early stages of preparing a bid, according to the Financial Times.
Advent declined to comment. Tate & Lyle is in the process of completing its own purchase, after it agreed an $1.8 billion (£1.4 billion) deal for CP. Kelco in June.
Its acquisition of the US-based company formed part of Tate & Lyle's efforts to invest in sugar reduction tech as customers seek healthier alternatives. Tate & Lyle declined to comment.