UK market data technology vendor CMS WebView has suspended trading in its shares pending an announcement of a potential reverse takeover of the firm.
Shares in the AIM-listed company soared 40% to 4.38 pence in morning trading on speculation that the firm was about to be sold.
In a statement, the company confirmed it is currently in initial discussions with another party that may lead to an acquisition, which if completed would classify as a reverse takeover under the AIM rules.
CMS shares have taken a battering over the last year as the firm struggled to meet sales targets for its proprietary TDI ticker plant software.
The stock lost a quarter of its value in June after CMS said it wouldn't break-even in 2004 as it had failed to win any orders for the TDI system in the first half of the year. The share price tumbled again in September when the company posted a 51% drop in turnover for the six months ending 30 June 2004.
The lack of sales forced CMS to initiate a strategic review in November in a bid to cut costs across the business.