UK's Bodycote gets $2 billion rival approaches from CVC, Veritas Capital

Aug 5 (Reuters) - Thermal processing services group Bodycote said on Wednesday it had received separate cash proposals from private equity firms CVC Advisers and Veritas Capital, both valuing the British company at about £1.56 billion ($2.10 billion).

Bodycote shares surged as much as 24% on the announcement, which comes two months after Apollo Global Management walked away from an 885 pence-per-share proposal, which valued Bodycote at about £1.52 billion at the time.

CVC's proposal would give shareholders up to 915 pence per share, comprising 907.8 pence in cash plus a 7.2 pence interim dividend, while Veritas offered up to 914 pence per share, including the same dividend.

The CVC and Veritas proposals represent premiums of about 22% and 21.9%, respectively, to Tuesday's closing price of 750 pence.

Bodycote shares, which rose to an intraday high of 927.5 pence on Wednesday, closed at 923 pence, above both proposal levels.

BOARD OPEN TO DEAL

Bodycote, which provides heat treatment and metal processing services to the aerospace, defence, automotive and energy sectors, said it would be minded to recommend either offer if talks lead to a firm bid.

The company said it was working with both parties "on an expedited basis" to reach a firm offer. Under British takeover rules, CVC and Veritas have until September 2 to announce a firm offer or walk away.

CVC declined to comment and Veritas did not immediately respond to a Reuters request for comment.

The UK market has faced a number of foreign bids recently, driving a record amount of dealmaking, as some analysts have said British-listed companies are undervalued.

Product testing firm Intertek and DCC Energy have each agreed to be taken private by PE firms. EasyJet is currently in talks with two buyout firms over a sale.

($1 = 0.7431 pounds)

(Reporting by Nithyashree R B and Ankita Bora in Bengaluru; Editing by Joyjeet Das and Emelia Sithole-Matarise)