US private equity firm Bain Capital has tabled a 1.1-billion-pound ($1.4 billion) proposal to buy the Chemring Group, Sky News reported on Monday, sending shares of the London-listed defence contractor up more than 16 per cent.
The 390 pence per share bid is at a premium of nearly nine per cent to the stock's close on Friday. Shares rose 13.7 per cent to 407 pence by 12:18 GMT.
Chemring and Bain declined to comment.
Bain had also prepared a second offer for Chemring, but it was unclear whether it had submitted that bid to the defence contractor's board, the report added, citing one source close to the situation.
Chemring makes naval anti-ship missile defence systems and other products. The company says its air and naval countermeasures unit has a more-than-65-per-cent market share.
Chemring supplies 85 per cent of NATO air fleets and 60 per cent of NATO naval fleets.
(Reporting by Yamini Kalia in Bengaluru; Editing by Shilpi Majumdar and Leroy Leo)