Telit considers u-blox takeover approach

Telit Communications said it had received an all-share bid approach from Swiss rival u-blox valuing and was considering the proposal.

U-blox's proposal would lead to Telit shareholders receiving u-blox shares with a value of £2.50 for each of their Telit shares. The deal would lead to Telit shareholders owning about 53% of the combined internet of things technology company.

Telit shares closed at 168.20p on Thursday. The shares jumped 18% to 199p at 08:38 GMT on Friday valuing the company at £262m.

"The board of Telit is considering the proposal, together with its financial adviser, Rothschild & Co, and a further announcement will be made when appropriate," Telit said. "The proposal assumes any such merger would be structured as an offer for Telit by u-blox."

U-blox said talks were at an early stage and subject to due diligence but that its board believed a deal had "a strong strategic rationale and could result in substantial synergies for both organisations".