LONDON (Reuters) - Shares in Britain's MonsterMob Group Plc (MOB.L:
Quote,
Profile,
Research) shot up more than 17 percent after the mobile ringtone specialist said it had received an indicative approach that may lead to an offer for the company.
"The board wished to stress that discussions are at a preliminary stage, the proposals being considered are subject to a number of material preconditions and there is no certainty that any offer will be made for the company," it said in a statement on Tuesday.
The stock was up 17.9 percent or 10 pence at 66p by 0745 GMT, valuing the company at 40.4 million pounds ($77.0 million).
Shares in the company have fallen steadily since January with the firm issuing two profit warnings over the summer.
In June the shares lost 20 percent of their value in a day after MonsterMob announced it had asked chief executive and founder Martin Higginson to leave and warned again over UK earnings.
The shares then lost over half their value in a single day in July when the company warned that new Chinese mobile phone regulations would hit its revenue hard.
(Additional reporting by Chris Wills)