Shares in British engineering group Vesuvius jumped today after it confirmed it had become the latest London-listed firm to be targeted by foreign bidders.

The FTSE 250 firm said it had received multiple takeover approaches by Austrian rival RHI Magnesita since March.

In a statement to shareholders, Vesuvius said it would assess RHI’s most recent £1.37billion cash-and-stock bid made in August, sending shares up 26 per cent, or 98p, to 472.8p,  while RHI fell 15p or 0.53 per cent.

The bid comes after Vesuvius rejected two previous proposals in March and June. Its latest bid values the British firm at 551p per share, a 47 per cent premium to its closing price on Monday.

Shareholders would receive 7.1million new RHI shares, giving them a 13 per cent stake of the business, and would be entitled to receive the previously announced 7.1p dividend.

The two firms both specialise in manufacturing heat-resistant materials that line ⁠furnaces, ladles and vessels used in extreme high-temperature processes such as steelmaking.

Vesuvius recently flagged that its steel division had lost ground as it battles rising costs and operational and supply chain issues in North America. 

AJ Bell investment director Russ Mould said: ‘RHI first made an approach towards Vesuvius in March, and again in June, before a third attempt in August. This begs the question why this information was not disclosed to shareholders until now. Three approaches in six months shows persistence on RHI’s part.’

The molten metals specialist said Cevian, an activist investor with a 14 per cent stake, supported the deal, adding: ‘The company appreciates Cevian’s commitment and engagement during this time and remains focused on the interests of and delivering maximum value for all shareholders.’

If Vesuvius agrees to a takeover, it would become the latest London-listed firm to fall into foreign hands.

This year, a string of London-listed firms has fallen victim to foreign predators, including City behemoth Schroders and Lloyd's of London insurer Beazley.

Others targeted include warehouse giant Segro, budget airline easyJet, ingredients maker Tate and Lyle and Evoke – the owner of bookmaker William Hill.