Theo Fennell, a jeweller whose rings and necklaces adorn stars including Helen Mirren and Elton John, has confirmed an approach from EME Capital that has sent its shares up.
Under the UK’s revised Takeover Code, updated last year, EME has until the end of 3 October to put up an offer or walk away. Talks at this stage are “very preliminary”, the jeweller said.
Theo Fennell’s shares have fallen nearly seven per cent this morning, reversing gains made in the past two days from Tuesday’s close of 9.75p to this morning’s opening at 15p. Shares currently sit at 14p.
The company is valued at just over £3m and has reported consecutive losses in recent years.
Despite its designs attracting the likes of Victoria Beckham, Theo Fennell launched a cheaper range in 2010 in a bid to offset poor sales in the UK.
If EME decides to make an offer and is successful, it it likely to turn its attention to the growing Asian emerging markets such as China, where consumers demand high-end fashion.