UPDATE 2-Moneysupermarket.com soars after bid approach

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LONDON, July 23 (Reuters) - Shares in Moneysupermarket.com (MONY.L) jumped almost 50 percent on Wednesday after the British price comparison website said its chief executive and majority shareholder had rejected an approach from an unnamed bidder.

"The unsolicited approach did not contain indicative terms for any offer and has been rejected by Mr Nixon," the firm said in a statement. It declined to comment further.

Chief Executive Simon Nixon is also the group's majority shareholder, with a 54 percent stake.

Moneysupermarket.com's shares have more than halved since it listed last July in the biggest Internet IPO since Google (GOOG.O) in 2004, as investors fret over the effect of a sharp deterioration in the UK mortgage and loan markets after a profit warning earlier this month.

It ended the day up 22.1 percent on Wednesday at 84.25 pence, off earlier highs of 102.5p, but valuing the business at almost 420 million pounds ($839 million).

Analysts said the stock was attractive at current valuations and could lure a range of potential suitors, from search engines like Google looking to expand their portfolios to rivals like insurer Admiral (ADML.L), owner of rival comparison site Confused.com, and even media companies, after U.S. firm EW Scripps bought Britain's uSwitch.com in 2006.

Private equity firms are also seen as potential bidders.

"It has obviously had its problems, but it is a market leader in the UK and probably globally, in terms of the competences, technology, knowledge and experience. That does make it attractive to a lot of people," analyst David McCann at Numis Securities said.

He added the bidder could yet come back with a more detailed offer to woo Nixon and other shareholders.

"It doesn't look like the company rejected it on price because a price wasn't offered. This doesn't mean they won't sell out," he said. "The only sticking point is they floated a year ago at 170p. There is that psychological barrier."

Google declined to comment on Wednesday. The U.S. giant tends to focus on buying companies that bring it new technology in web search or advertising, such as its $3.1 billion acquisition of DoubleClick Inc. that closed in March, rather than using acquisitions to reach more consumers. Wednesday's news, however, follows confirmation on Tuesday of takeover interest in specialist mortgage lender Paragon (PARA.L), and is the latest sign buyers could see value in Britain's battered financial sector.

Moneysupermarket has grown quickly in recent years but the price comparison sector has become increasingly competitive, with a flurry of new entrants last year including gocompare.com and tescocompare.com, launched by retailer Tesco (TSCO.L). (Additional reporting by Georgina Prodhan)