Focus Solutions (LON:FSG) shares shot up around 30 percent after it confirmed that it is currently in preliminary discussions over a potential sale of the company.
The shares spiked 30 percent to reach a high of 137 pence before easing. Shares were trading at 122.50 pence at lunchtime, up almost 17 percent from Monday’s close.
The company acknowledged the recent share price move in the brief statement. However it cautioned that: “Discussions are at an early stage and there can be no certainty that an offer will be made or as to the terms on which an offer might be made.”
Focus Solutions shares have performed particularly well over recent weeks, rising from around 55 pence in early October.
The strong rally was sparked by a £10 million contract win, which broke a company record, on 4 October 2010.
It was supported further with better-than-expected half-yearly results later in October.
Focus Solutions provides software that automates the delivery of financial products and services, Its products help financial service providers to reach their customers across multiple distribution channels.
Its clients include IFAs, bancassurers, wealth managers, product providers and mortgage lenders.