UK's Currys soars after China's JD.com joins takeover battle

Shares in Currys, which sells fridges, washing machines, computers and other electricals, traded up 37 percent to 65 pence in early deals on Monday, the first time the shares have traded since news of a possible takeover emerged. Britain's Telegraph newspaper reported that JD.com representatives had made contact with Currys and held exploratory talks in recent weeks citing sources.

(Recasts with JD.com possible bid, share price) LONDON, Feb 19 (Reuters) -

China's JD.com said it was evaluating a takeover of Britain's Currys, sending shares in the electricals retailer soaring, and laying the ground for a bidding war after the group rejected a rival 700 million pound ($883 million) deal. Chinese e-commerce group JD.com Inc confirmed on Monday that it was looking at Currys, after a report in The Times newspaper said that another bidder, U.S.-based investor Elliot Advisors, was considering a higher offer.

Currys confirmed to the stock market on Monday that it had rejected Elliot's possible cash offer of 62 pence per share, saying that it believed it significantly undervalued the company. Shares in Currys, which sells fridges, washing machines, computers and other electricals, traded up 37 percent to 65 pence in early deals on Monday, the first time the shares have traded since news of a possible takeover emerged.

Britain's Telegraph newspaper reported that JD.com representatives had made contact with Currys and held exploratory talks in recent weeks citing sources. JD.com said in its statement that "it is in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys."

Currys, which formerly operated the Dixons and Carphone Warehouse brands in Britain before focusing on the Currys name, has struggled to grow profits in recent years as consumer incomes have been squeezed by high inflation. Shares in the company, whose main business is in the UK and Ireland and which also has a presence in the Nordics and employs 28,000 people, had lost 54% of their value in the last two years. ($1 = 0.7937 pounds) ($1 = 0.7924 pounds)