Midlands software firm Misys yesterday confirmed that an independent committee of the board had authorised some members of the senior management team to explore the possibility of making an offer.
The committee said no offer had been received and no price had been discussed, but deal-ers said last week there was talk in the market that the offer would be made at 245 pence per share.
Evesham-based Misys announced earlier this month it had received a request from a team of senior managers for talks and the committee - chaired by Sir Dominic Cad-bury - yesterday said it had "authorised certain members of the senior management team, on a non-exclusive basis, to explore the possibility of making an offer for Misys".
The committee said it was looking for the best way to maximise shareholder value while minimising disruption to the business and added it believes "there is significant value within Misys and is confident in the growth prospects of the company".
According to one report earlier this week Misys has also received a separate approach from a private equity firm. The private equity team of General Atlantic Partners and Permira is said to have been in talks with Misys management for "some months".
Shares in Misys have outperformed the UK software and computer services sector by two per cent over the last 12 months. The group is valued at around £1 billion. Misys ended talks in March to sell its financial support services arm Sesame and is in the process of restructuring its business as it struggles with flat profits. It is selling off non-core activities to focus on key areas of "health and wealth". JPMorgan Cazenove has been appointed to advise the committee.