In an earlier statement, De La Rue, which had seen the value of its shares drop by nearly 40 percent since March following production problems at one of its paper factories, said it had received a "highly preliminary and opportunistic" approach from an unnamed party. [ID:nRSF3927Xa]
Oberthur Technologies, which is the world's third-biggest banknote printer, declined to comment. Shares in De La Rue rose 23 percent to 799 pence at 0950 GMT, valuing the business at around 800 million pounds ($1.3 billion).
Analysts said an offer approach would need to be pitched in the region of 900 pence, valuing the business at around 890 million pounds ($1.4 billion) to have a realistic chance of securing the support of De La Rue's board and shareholders.
"We're highlighting the 900-1000 pence range as likely to be necessary in order to get support," said Investec analyst Guy Hewett.
"While the short term quality problems are material De La Rue has a very strong market position, in a market that has little spare capacity, to produce an obviously valuable product," he added. For the latest updates PRESS CTR + D or visit Stock Market news Today
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