LONDON (ShareCast) - (Sharecast News) - Precious metals miner Adriatic Metals surged on Tuesday after confirming that it is in talks with Toronto-listed peer Dundee Precious Metals about a possible takeover offer.
Adriatic said it has agreed to provide Dundee with access to limited due diligence information in order to facilitate the discussions.

"Discussions remain ongoing and there can be no certainty that any firm offer will be made, nor as to the terms of any such offer," it said, adding that further announcements will be made in due course, as appropriate.

Under UK takeover rules, Dundee now has until 17 June to either announce a firm intention to make an offer or walk away.

Adriatic was responding to an article by Sky News, which said that bankers have suggested any offer could value the group at well over £700m.

At 1530 BST, the shares were up 26% at 223p.

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