Advanced Medical Solutions Group Plc surged on Friday following a report that private equity firm Bridgepoint is exploring an offer for the company that could value it at between £550m and £600m.
According to banking sources cited by Sky News, Bridgepoint is examining a bid valuing AMS at between 270p and 280p per share, a premium of more than 30% to its current share price.
Sky said it was unclear on Friday morning whether it had made a formal approach to the board of AMS.
News of Bridgepoint's interest comes months after Montagu Private Equity abandoned its interest in a bid for the company. Inflexion, another private equity investor, had also been studying a potential offer last year.
AMS Group manufactures surgical brands including LiquiBand and Resorba.
At 1100 GMT, the shares were up 16% at 240.48p.