May 28 (Bloomberg) -- Thus Group Plc, the Scottish phone company whose customers include HSBC Holdings Plc, rose the most in five years in London trading on speculation the company may be a takeover target.

Thus jumped 19 pence, or 17 percent, to 129 pence as of 12:01 p.m., the biggest rise since May 2003. The shares had fallen 16 percent this year before today. Thus has a market value of 234.3 million pounds ($463.1 million).

``Given the potential scale benefits, we believe there remains scope for further consolidation in both the U.K. and continental Europe'' in the telecommunications sector, said Chris Alliott, a London-based analyst at ABN Amro Holding NV. ``Thus is among the smaller players which might be targeted.''

Barbara Anne Nimmo, a spokeswoman at Glasgow-based Thus, declined to provide immediate comment.

To contact the reporters on this story: Alex Armitage in London at aarmitage@bloomberg.net

Last Updated: May 28, 2008 07:22 EDT