Chime in advanced takeover talks with WPP-Providence consortium

(Adds deal details, share movement)

July 30 (Reuters) - Marketing group Chime Communications Plc (LSE: CHW.L - news) said it was in advanced talks with a consortium of WPP (Swiss: OXWPP.SW - news) Plc and Providence Equity Partners LLC for a potential cash offer of 365 pence per share.

The offer values Chime, founded by Margaret Thatcher's former media adviser Lord Bell, at about 367 million pounds ($572.52 million), based on around 100.7 million shares outstanding as of June 1.

The potential offer by shareholder WPP (LSE: WPP.L - news) and buyout firm Providence includes an interim dividend of 2.53 pence per share. WPP owns about 20 percent of the company.

Shares (Berlin: DI6.BE - news) in Chime, which has a market value of 276 million pounds, rose almost 29 pct on Thursday on the London Stock Exchange.

Investec Securities analysts said the premium of about 30 percent to Chime's Wednesday closing price seemed reasonable.

The brokerage, however, added that there was some uncertainty over whether another party would become involved.

Chime said it had constituted an independent board committee to talk with the consortium, which has until Aug. 26 to make a firm offer or walk away.

Chime reported a pretax profit of 30.1 million pounds and an operating income of 198.9 million pounds in 2014.

Shares in the company were up 26 percent at 345.25 pence at 0825 GMT. They have risen about 22 percent year-to-date.

($1 = 0.6410 pounds) (Reporting by Aastha Agnihotri in Bengaluru; Editing by Gopakumar Warrier and Anupama Dwivedi)