Shares in telecoms giant TalkTalk have surged 16% after it agreed to consider a takeover bid from investment firm Toscafund that values it at £1.1bn.
TalkTalk said that its board had “agreed to progress the proposal further” and would consult advisers.
But it added that to make any firm bid, Toscafund would have to get the backing of TalkTalk chairman Charles Dunstone, who owns nearly 30% of the firm.
Toscafund already has a similarly sized stake in the company.
Toscafund’s offer is worth 97p a share, considerably less than a 135p-per-share offer that it reportedly made last year.