Technology PR firm Next Fifteen Communications says that it has received two bid approaches.
That sparked a 9p rise in the shares to 52.5p each, which values Next Fifteen at £28.4m.
Fully listed marketing services companies Chime Communications and Huntsworth have both confirmed that they are holding talks with Next Fifteen.
The talks are at an early stage.
Next Fifteen has a strong niche business and a good balance sheet. Edison Investment Research expects full year adjusted profits to fall from £6.6m to £4.5m. That means that Next Fifteen is currently valued at around nine times prospective earnings.
This is a cash generative business. There could be net debt of £1.5m by the end of July 2009 but Next Fifteen should get back to a net cash position next year.
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