Shares in speciality chemicals company Elementis (LSE: ELM) surged over 9% on Wednesday after a failed takeover approach valued the FTSE 250 firm at £940 million.

The jump came after Reuters revealed that New York private equity firm KPS Capital Partners LP had tabled a 160p per share bid for Elementis, but later decided against pursuing an offer after the company sought a higher 180p per share price tag.

The news builds pressure on Elementis, which has faced growing calls from shareholders Franklin Mutual Advisors and Odyssean Capital to consider putting itself up for sale. The investors argue Elementis is too small to accomplish its goals alone and would benefit from merging with a larger company.

Read More News:
RS Group shares slide as Q3 revenues decline

Elementis, one of the UK’s largest speciality chemicals and personal care companies with extensive US, Europe and Asia operations, has seen its valuation fluctuate amid the takeover speculation. Its shares are up 12.3% over the past year.

The failed KPS offer valued the company at £940.5 million, shy of the £1.06 billion price Elementis had sought. Further takeover bids cannot be ruled out as Elementis weighs options under pressure from key shareholders.