TPG Telecom shares took off after the telco announced a $1.4 billion takeover of iiNet what would form a major player in the telecommunications industry.
The stock is up more than 18% to $9.16. The takeover target, iiNet, is trading at $8.67, just above the offer price of $8.60. The price is slightly higher because investors have factored in a dividend of 10.5 cents to be paid Monday.
The offer is about one-third better than the average share price over the last month and values iiNet higher than it has ever traded.
The combined companies will have 1.7 million customers, revenue of $2.3 billion and staff of about 5,200.