Shares in storage and delivery firm Exel have surged after it revealed that it was in talks about a possible takeover offer. The group said it had been approached by German mail giant Deutsche Post.
"Discussions are at a preliminary stage and there can be no certainty as to their outcome," Deutsche Post said.
Exel has long been the subject of takeover speculation, with US giant United Parcel Services touted as a possible suitor earlier this year.
Following news of the bid approach, shares in the Bracknell-based logistics firms surged more than 17% to close at 1,178.5p pence.
Expansion
Exel employs 109,000 people in more than 120 countries and has itself been active in the consolidation of the logistics sector, paying �328m to buy fellow UK firm Tibbett & Britten last August.
Its customers include Boots, Burberry, Mothercare and consumer products giant Procter & Gamble.
The announcement proved negative for Deutsche Post's shares, which sank as investors worried that any offer it makes could be too high.
The group - which owns courier firm DHL - is looking for opportunities to expand beyond its German market before its domestic monopoly ends in 2007.
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