Shares in industrial Internet of Things company Telit Communications Plc (LON:TCM) advanced on Monday following weekend reports that potential bidders are circling.
Private equity companies were said to be sizing up the company, which specialises in machine-to-machine communications.
The Financial Times reports that Berkshire Partners, Vector Capital, Apax, Advent and Battery Ventures have been running the rule over the company, though none as yet have lodged an offer.
Merchant bank Rothschild is apparently gauging interest from funds for Telit's automotive division, while potential trade buyers have also been sounded out.
Meanwhile, Chinese investor Run Liang Tai Management has quickly built up a stake of more than 14% following the London-listed company's profit warning in August and the departure of its chief executive officer, Oozi Cats, after it emerged he was under investigation in the US for alleged historical indictments.
The Hong Kong-based fund is now Telit's biggest stakeholder, though it emerged on Friday that Goldman Sachs has control over around 6.5% of Telit's voting rights.
In response to recent press coverage, Telit issued a stock market statement in which it reminded investors it has already announced a review of its activities with a view to reducing the number of product lines and sharply cutting its cost base.
Even before the review had been sanctioned, the board had for some time been actively considering pruning its product lines, and today it confirmed that one of the product lines being considered for sale is the group's automotive division. This process, led by Rothschild, is at a very early stage, Telit said.
Telit's shares were up 15% at 181.2p in mid-afternoon trading.