BUZZ-Morgan Advanced: Spurns Vesuvius's takeover proposal

** Morgan Advanced Materials Plc (Other OTC: MCRUF - news) 's shares rise as much as 5.5 pct, after the firm rejects an all-share takeover proposal from sector peer Vesuvius Plc (Other OTC: CKSNF - news) .

** Hitting a high of 307.9 pence, Morgan Advanced shares are the second largest gainers on the FTSE-250 Midcap Index. Vesuvius's stock dips 1.7 pct to 409.2 pence.

** Morgan Advanced, which makes carbon and ceramic based high-temperature insulation products, says the nil-premium proposal would have exposed its shareholders to Vesuvius' lower margin businesses in the iron and steel sectors.

** Vesuvius had a market capitalisation of about 1.14 bln pounds ($1.8 bln), while Morgan Advanced was valued at about 833 mln pounds as per Friday's close.

** UBS (NYSEArca: FBGX - news) analysts say that while the combination has some logic, it isn't a "must do" deal as the sales overlap is just below 10 pct of the two firm's combined sales worth of roughly 2.3 billion pounds.

** Vesuvius will not make a offer for Morgan Advanced as its initial proposal was rejected without any discussions, the maker of ceramic moulds and lining for steelmakers and foundries says separately. ($1 = 0.6380 pounds) (RM (LSE: RM.L - news) : esha.vaish.thomsonreuters.com@reuters.net)