A bidder for Elementis?

Shares rise on the speculation.

A private equity firm is to formally table a bid for Elementis, according to Venturedome, a website.

A spokeswoman for the company offered no comment on the speculation but said an announcement would be made following the chemical company's AGM tomorrow.

Shares in Elementis have risen two per cent to 99p from 97p on the speculation, valuing the company at about $400m. Elementis had sales of £573.8 million and pre-tax profits of £58.4m last year.

Elementis disclosed in December that it had been approached by a private equity firm with a view to doing a deal, but nothing much has been heard since. The company says it has been investigating whether the speculative offer would be acceptable to shareholders.