Updated from 10:23 a.m. EDT

Shares of Internet media network

Lycos

(LCOS)

climbed Monday after the Spanish Internet company

Terra Networks

said it was in talks to acquire the firm in a deal anticipated to be valued at more than $10 billion.

Lycos of Waltham, Mass., closed up 7 13/16, or 14%, at 61 15/16 on Monday.

Terra disclosed the talks late Friday evening. According to various news reports, Terra has offered to swap more than 1.5 of its shares, or about $90 based on Friday's closing price, for each Lycos share. The deal would represent a premium of about 67%.

Arthur Newman, an analyst with

ABN Amro

, said such a premium was fair considering that Lycos was the largest remaining independent Web portal.

"Lycos is a unique property," Newman said. "It's the last one available for purchase that anyone can afford. It certainly deserves a substantial premium."

Newman rates Lycos an outperform. His firm has not done any underwriting for the company.

Such an acquisition could help Terra, the second-largest player in the European Internet market, to gain content in English.

Madrid-based Terra, the Internet subsidiary of Spanish phone giant,

Telefonica SA

, has a strong presence in Spain and Latin America.

Terra confirmed that talks were occurring but stated that there was no guarantee the two parties would reach a deal.

Reuters

said the deal could be announced as early as Tuesday after the close of trading.