EQT in advanced talks to buy Keywords Studios for $2.8 bln

European private equity group EQT EQT is in advanced discussions to buy Dublin-based video game services company Keywords Studios KWSL for 2.2 billion pounds ($2.79 billion), the companies said in a statement.

EQT is negotiating over a possible cash offer of 25.50 pounds per share of London-listed Keywords, the statement said. This offer represents a premium of about 73% over Keywords' closing share price of 14.70 pounds on Friday.

EQT had previously made four unsolicited proposals for Keywords, all of which were rejected by the company's board, the statement said. The current offer represents a significant increase from the initial proposal, it added.

After careful evaluation with its financial advisors, the Keywords board concluded that it "would be minded to recommend" the proposal to the company's shareholders, the statement said.

Under Britain's takeover rules, EQT has until June 15 to either make a firm offer or walk away.

Established in 1998, Keywords Studios is a global provider of creative and technology-enabled solutions to the video games and entertainment industries and now has over 70 facilities in 26 countries.

($1 = 0.7875 pounds)