(Alliance News) - Shares in Spire Healthcare Group PLC climbed on Friday as a report in the Economic Times suggested that India’s Narayana Health is in talks with the company’s shareholders about buying a controlling stake.

According to Economic Times sources, Bengaluru-based Narayana Health's top management has initiated detailed negotiations with large institutional shareholders of Spire and has reportedly received positive feedback.

In response, shares in Spire Healthcare rose 8.1% to 237.21 pence each in London on Friday morning.

Narayana's Chair and Founder is Devi Shetty, a renowned heart surgeon and billionaire. His team are expected to meet shareholders next month to drum up support for the bid and are working with advisors to build a strategy, the report added.

Narayana Health has also sounded out global banks and financial institutions for USD500 to USD600 million in funding, the report said.

Citing people familiar with the matter, the Economic Times said Narayana plans to buy at least 51% of Spire via an open offer, but if Narayana manages to acquire around 75%, it may consider taking the company private.

London-based Spire Healthcare is the second-largest provider of private healthcare in the UK. It runs 40 hospitals and more than 50 clinics across the UK.

By Jeremy Cutler, Alliance News reporter

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