(Reuters) - Satellite radio provider Sirius XM Canada Holdings Inc XSR.TO, whose biggest shareholder is U.S.-based Sirius XM Holdings Inc SIRI.O, said it had been approached for a potential deal and was in early-stage talks.

The news comes a day after a Canadian newspaper reported that the top shareholders of Sirius XM Canada Holdings were planning to take the company private in deal that could value it at about C$750 million ($538 million).

The Globe and Mail newspaper, citing a person familiar with the matter, said on Thursday that the cash offer price for Sirius XM Canada Holdings would be C$4.25 per share.

Shares of Sirius XM Canada Holdings, which owns Sirius XM Canada Inc, rose 16 percent to C$4.26 in morning trading on the Toronto Stock Exchange.

Sirius XM Holdings owns about 32 percent in Sirius XM Canada Holdings, with Canadian Broadcasting Corp holding about 12.5 percent. Slaight Communications Inc and Canadian businessman John Bitove are its other major shareholders.

More than 37 percent of Sirius XM Canada Holdings’ outstanding shares are held by the public, according to Thomson Reuters data.

Sirius XM Holdings shares rose 1 percent to $3.42 on the Nasdaq.