Adriatic Metals in takeover talks with Canada's Dundee Precious Metals - report

(Sharecast News) - Precious metals miner Adriatic Metals is reportedly in the very early stages of takeover talks with Toronto-listed peer Dundee Precious Metals. According to Sky News, the status of the talks and other key details, including any offer price under negotiation, were unclear on Tuesday.

One person close to the situation said it was unclear whether any formal offer would emerge.

Valued at about £610m, Adriatic has a market capitalisation roughly one-third of that of Dundee, which has a presence in the Balkans.

Sky said that with a conventional takeover premium factored in, any offer could value the target at well over £700m, according to bankers.

Adriatic produces copper, gold, lead, silver and zinc from recently developed mining operations in Bosnia and Herzegovina.

At 1500 BST, Adriatic shares were up 23% at 219p.

The two companies were rumoured to have held similar talks as recently as last year, although they did not progress to any form of public confirmation, Sky said.