Overseas Union Enterprise Ltd jumped as much as 5.5 percent on expectations its property business will benefit if its consortium's bid for Fraser and Neave is successful.
A consortium led by OUE launched on Thursday a S$13.1 billion bid for F&N, trumping a takeover offer from firms linked to Thailand's third-richest man.
By 0241 GMT, OUE shares were up 4.3 percent at S$2.65, with 787,000 shares traded, 1.3 times its average daily volume over the last five sessions. F&N shares gained 2 percent to S$9.31, rising above the consortium's offer of S$9.08, and was the most actively traded stock by value.
"Should OUE win the bid, this is an immediate accretion to its book and restated net asset value will be lifted by 22 percent," said Religare Institutional Research in a note.
The consortium's offer of S$9.08 per share for F&N reflects a 30 percent discount to its property book value, Religare said, adding that to value F&N's property assets at book value, OUE could bid up to S$10.30 a share.
Religare said the break-up value for F&N's business is much higher than the Thais' offer of S$8.88 or the consortium's S$9.08 bid.
OUE shares are up 26 percent so far this year.
1038 (0238 GMT)