Shares in Covestro, the German chemical company, experienced a significant surge in late European trading on Friday following a report by Bloomberg. According to the report, Covestro’s supervisory board is currently meeting to consider whether to enter into takeover talks with Abu Dhabi National Oil Co (Adnoc).
At 1456 GMT, Covestro shares were trading 8.5% higher at EUR51.84, having previously risen as much as 11% earlier in the afternoon.
Covestro declined to provide any comments regarding the report when approached by Dow Jones Newswires. Adnoc, on the other hand, has not yet made any official comments on the matter.
It has been reported that Adnoc’s proposed takeover bid values Covestro at 11.6 billion euros ($12.4 billion) or potentially even more.
As of Thursday’s close, Covestro’s market capitalization stood at EUR9.06 billion, according to FactSet.
This news follows the initial report in June on Adnoc’s interest in acquiring the German company. Initially, Covestro rejected Adnoc’s bid but expressed a willingness to engage in talks if improved terms were presented.
