Investing.com -- Grifols (BME: GRLS ) shares surged more than 11% on Wednesday following a report by El Confidencial that Canadian investment firm Brookfield has renewed takeover discussions with the Spanish pharmaceutical group.

The stock traded at 9.06 euros as of 08:19 GMT.

According to the report, Brookfield has reached out to the Grifols founding family and is weighing a new offer that could value the company at around 7 billion euros ($7.55 billion).

The fund is reportedly working with Morgan Stanley on the potential bid.

Brookfield had previously made a non-binding proposal last November, valuing Grifols at 6.7 billion euros, but withdrew after the company’s leadership dismissed the offer as inadequate and advised shareholders not to sell.

After Capital Markets Day (CMD), Grifols “is in a superior cash and governance position and on track to realise strong growth,” Barclays analysts said.

The analysts believe that a potential take-private of Grifols could allow the new management team, in place since 2024, to focus more effectively on advancing the company’s turnaround strategy launched in September 2022.

They argue that operating outside the pressures of public market volatility would benefit the process.

At the time of Brookfield’s previous bid, Barclays had suggested a fair value for Grifols A shares in the range of €12 to €13, higher than the €10.5 per share offer that was rejected.

The investment bank also pointed out that the proposal had not accounted for the company’s requirement to offer the same price for both A (ordinary) and B (preferred) shares under its articles of association.

Barclays noted that investor feedback then indicated some shareholders were seeking up to €15 per share.

“We expect shares to react positively to the news that the long-term GRF value could be realised near-term, but warn against the return of media headline risk as we predict a return of articles focused on the potential progress of a deal,” analysts concluded.