Chime Communications shares rose 70% on the London Stock Exchange Thursday after the company confirmed late Wednesday that it was talking to WPP and Providence Equity Partners about a sale of the company for approximately $550 million.
Shares in the company rose to 345 pence or about $5.37 in Thursday trading.
WPP, which already has a minority stake in Chime hasn’t commented on the talks yet. But Chime confirmed talks were ongoing and focused at least for now on a price of 365 pence per share plus an additional 2.53 pence per share described as an “interim dividend” for 2015.
Chime is a communications and sports marketing group that includes CSM Sport & Entertainment, the ad/marketing shop VCCP Partnership, and healthcare marketer OPEN Health.
The company’s CEO is Christopher Satterthwaite, who has been in the post since 2003.
Chime noted that in accordance with UK financial regulations, WPP and Providence have until Aug. 26 to make a firm bid for the company or declare that it isn’t going to proceed.