PRAGUE, July 15 (Reuters) - The Prague Stock Exchange"s PX
index climbed to a 10-year high on Thursday after shares
in dual-listed cybersecurity group Avast
soared up to 15% on news the company was in advanced talks over
a merger with peer NortonLifeLock.
Avast announced the advanced talks late on Wednesday after a
Wall Street Journal report. If the deal goes through, it will be
a cash-and-share offer, Avast said.
The company, however, said there was no certainty a deal
with the U.S. group, which is twice Avast"s size, will be
agreed.
In Prague, shares in Avast, which has Czech roots but is
mainly listed in London, had gained 11.5% by 0800 GMT. Prague
was 2.2% higher at 1,184.42, off a session high of 1,197, and
Avast was the main mover.
"We consider the news positive for Avast"s shares since a
potential offer will probably encompass a premium to the current
market price," J&T Banka analysts said.
The rise brings the PX"s gains so far in 2021 to over 15% as
equity markets boom with economies coming out of the coronavirus
pandemic.
Elsewhere in central Europe"s markets, Warsaw blue-chips
gained 0.4% while Budapest was little changed.
On currency markets, the Czech crown and Hungarian
forint led gains, rising 0.15%-0.2%, with both getting
support since their central banks last month delivered the
European Union"s first interest rate hikes since the pandemic
started in early 2020.
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