UPDATE 3-Canaccord's management seeks to acquire firm in C$1.13 bln deal

(Adds stock price, special committee response)

Jan 9 (Reuters) - A group led by the management of Canaccord Genuity Group Inc said on Monday it would launch a takeover bid valuing the Canadian financial services firm at nearly C$1.13 billion ($845 million) after it lost 44% of its market capitalization last year.

The offer price of C$11.25 per share marks a 31% premium to the Canaccord stock's last close. Shares rallied 25% to C$10.73 in early morning trading, touching their highest in nearly seven months.

Canaccord said its board had formed a special committee of independent directors to evaluate the proposal. In prior talks with the management group, the committee had said it would not support an offer of C$11.25 per share, based on preliminary analysis.

But the committee would fully respond to the offer in due course, it added.

Spooked by a tough economic environment where stocks have taken a hit due to rising interest rates and prospects of a recession, several companies have signed go-private deals since last year.

In June, Canaccord said its largest shareholder had expressed concerns that the public markets were undervaluing the company. After discussion with company Chief Executive Officer Daniel Daviau, the shareholder said it would support a go-private deal.

If the deal closes, Canaccord will be owned by a group comprising CEO Daviau, chairman David Kassie, all members of its global operating committee and certain other employees. This group currently owns nearly 21.3% of the company.

Funds affiliated with investment firm HPS Investment Partners have agreed to partially fund the deal through a C$825 million debt, Canaccord said.

Canaccord offers wealth management, investment banking and broker research services. ($1 = 1.3370 Canadian dollars) (Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli and Shailesh Kuber)