Salvesen soars after bid approach

Shares in UK logistics service provider Christian Salvesen have risen as much as 28% after the firm confirmed it had received an initial takeover approach, reported The BBC.

The firm, which provides warehousing and distribution services for Marks and Spencer and for Morrisons, said it was being courted by two parties.

But the Northampton-based company added there was no certainty that a formal offer would be made.

The firm also said the approaches were subject to a number of pre-conditions.

Shares in Christian Salvesen surged in early London trade by 28%, but fell back slightly to trade up 12.5 pence, or 24%, at 64p towards the end of the session.

Analysts speculated that the wording of the firm's statement could indicate that the buyer was a private equity firm, but German mail and logistics firm Deutsche Post was also been mentioned as a possible suitor.

The company was set up in 1846 in Edinburgh by Theodore Salvesen, who was later joined by his brother Christian.

It experimented with transporting chilled and frozen food in the 1950s, which is its main business today.

Besides the UK, it has operations in seven European countries