Australia's Macquarie Bank unveiled a €1.1 billion hostile bid for German water-metering firm Techem today.
Techem's shares jumped 14.1 per cent to €48.20, outperforming a 0.6 per cent rise in the German midcap index.
A Macquarie spokeswoman said its Macquarie European Infrastructure Fund II had already acquired a 17 per cent stake in Techem. Macquarie will offer €44 a share for the German company.
Financial investors such as Macquarie are attracted to water and metering companies because of their stable cash flows.
A Techem spokesman said the company would discuss the offer and respond in due course. Macquarie also disclosed that it had met Techem twice and that the management had declined to support its bid, leading the Australian bank to go public to seek support from shareholders.