Rentokil traded up on a takeover rumour

Rentokil (LSE:RTO) shares advanced on Monday on reports that former BT chief executive Philip Jansen is attempting to acquire the pest control business, supported by private equity money.

The company's shares rose to 497.60 pence, returning to levels last seen in March.

Jansen is seeking to become Rentokil's chairman, according to a weekend report by The Sunday Times.

In terms of game plan, the report suggests he will aim to address integration issues with North American business Terminix, acquired by Rentokil in 2022, and pursue further acquisitions in the US.

A potential deal could value Rentokil at approximately £15 billion ($19.37 billion), which would be a 30% takeover premium.

Private equity firms including Bain Capital, CVC, and Advent were said to be involved.

Terminix represents around 30% of US market share, but Rentokil has struggled to integrate the two businesses, and in late 2023 it issued a profit warning.

In London, Rentokil shares were up 39p or 8.7% changing hands at 487.1p on Monday.

The price remains some 24% lower over the past twelve months, however.