Power producer Calpine Corp (CPN.N) is exploring a sale and is working with investment bankers at Lazard Ltd (LAZ.N) to find possible buyers, the Wall Street Journal reported on Wednesday.
Shares of Calpine, which generates electricity from natural gas and geothermal resources, soared as much as 18.1 percent to $11.89 in late afternoon trading.
A number of private equity firms have shown interest in buying the company in an auction, which is in its early stages, the Journal reported, citing people familiar with the matter. (on.wsj.com/2qTSMmy)
However, there is no guarantee there will be any deal, the report said.
Calpine declined to comment.
The company had a market capitalization of $3.63 billion as of Tuesday's close.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Maju Samuel)