UK's Gamma Communications says Providence among parties in talks for potential takeover

May 13 (Reuters) - British telecom firm Gamma Communications GAMA.L said on Wednesday that private equity firm Providence Equity Partners is among the parties in discussions with the company for a potential takeover.

The company’s stock rose as much as 5% to 939 pence to be among the top gainers on the FTSE 250 .FTMC index.

Here are the details:

• Talks at a preliminary stage, with no certainty on whether any offer will be made or terms

• Under UK takeover rules, Providence has until June 10 to either make a firm offer or walk away

• Gamma is not required to name other potential bidders unless they are identified in market speculation

• The firm completed a restructuring in the second half of 2025 aimed at boosting profitability

• In March, Gamma said the measures would reduce annual operating expenses by 7 million pounds ($9.28 million) from 2026

• As of Tuesday’s close, Gamma's stock has fallen nearly 32% over the past year, resulting in a market capitalisation of about 810 million pounds

• Providence declined to comment