Shares in International Power soared as much as 9% this morning after it was reported yesterday that France's state controlled power giant GDF Suez has made a tentative takeover offer for the company.
GDF Suez, Europe's fifth-largest electricity generator, has been in talks with Britain's International Power since before Christmas.
An analyst at brokerage Citigroup believes that International Power may be open to an approach if the price is right.
"Although IPR's business model has weathered the recession it may prove difficult to reignite significant growth," says a note from Citigroup.
"Therefore, it is possible IPR may be open to offers for the company, but we would expect management to seek a price materially above 350 pence per share."
The deal was first reported in the Sunday Times but there has still been no statement from either GDF Suez or International Power.
Shares in International Power rose 9% to a 15-month high of 351.4p this morning.
