BUZZ-Chime: advanced takeover talks spur best day since 2002

** Chime Communications (LSE: CHW.L - news) up 26%, on course for biggest one-day rise since late 2002 in heavy volume after the marketing co says in advanced talks with its largest shareholder WPP (Swiss: OXWPP.SW - news) & buyout firm Providence for a potential cash offer

** Offer of 365 pence per share values co at about 367 mln stg ($572 mln), based on around 100.7 mln shares outstanding as of June 1

** Investec Securities analysts say the price seems reasonable, moving stock's TP under review

** "The bid price valuation implies a P/E of 16x/14.3x and adj EV/EBITDA 10.8x/9.5x, which are very healthy multiples for small agencies - WPP (LSE: WPP.L - news) trades on a P/E of 15.6x/14.2x and EV/EBITDA 11.5x/11x," Investec Securities analysts say

** WPP owns about 20 pct of co

** The brokerage adds that there was some uncertainty over whether another party would become involved

** Chime at highest level since early March and top performer on the FTSE Small Cap Index (Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net)