A luxury jeweller whose customers include the Beckhams and Helen Mirren saw its share price surge after it confirmed takeover talks with a private equity firm.
Theo Fennell, which sells jewellery at prices ranging up to £250,000 or more per piece, said it was in "very preliminary" talks with EME Capital over a bid.
But the group, which sells jewellery designed by its founder, art school graduate Theo Fennell, who still owns 16.1% of the company, said there was no certainty a formal offer would be made for its business.
Shares in the company, which also designed trophies for the Italian and Monaco Formula One Grand Prix events, were 30% higher, giving it a market value of £3.5 million.
Theo Fennell, which has a flagship store in Fulham, London, and sells its products in jewellers across the country, reported a pre-tax loss of £1.7 million in the year to March 31, compared with losses of £550,000 the previous year.
The company's turnover in the last financial year was £12.4 million, compared with £12.5 million the previous year.
EME Capital describes itself as a financial advisory firm with offices in London, Paris and Dubai. Its partners have investment banking, capital markets and private equity experience.
It recently advised private members club Soho House on the sale of a majority stake to US investment firm Yucaipa.
Under City takeover rules, EME has until close of trading on October 3 to make a firm offer or walk away.