Workplace Technologies saw its share price rocket 46 per cent yesterday after the company announced it was in takeover talks.
By the time trading closed yesterday, shares in the Hertfordshire-based network reseller had jumped 68 pence to 213 pence.
The company admitted it was at an "advanced stage of discussions which may, or may not, lead to an offer being made for (its) share capital."
Shares stood at 114 pence this morning.
City analysts believe the recent fall in Workplace's share price had made it vulnerable to a bid.
At the start of last year, the company's share price was nudging 350 pence.
Among businesses actively buying networking companies in the UK are South African Datatec. Computacenter is also underweight in this sector.
Workplace was sold by ICL to its management for £12 million in 1995. It floated two years later with a market capitalisation of £60 million. Last November it bought networking integrator Lanbase for almost £20 million.
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