Shares in Misys rose over eight per cent in morning trading after the UK banking software and treasury systems vendor confirmed it has received a "preliminary" takeover approach.
The firm has long been the subject of takeover speculation, with its share price up around 30% over the last year, boosting its value to approximately £1.4 billion.
The rumour-mill has gone into overdrive in recent weeks, with a research note by Credit Suisse last month fanning the flames, suggesting that Misys chief Mike Lawrie and 20% shareholder ValueAct would be ready to cash in.
This was quickly followed by another note, from Jefferies, also suggesting a takeover could be in the offing, citing SunGard, HCL and Temenos as potential bidders.
Now, Misys has finally issued a brief statement saying: "The Board of Misys plc notes the recent speculation regarding a possible offer and confirms that it has received a preliminary approach that may or may not lead to an offer being made for the company."
Shares in the vendor were up 32.5 pence, or 8.45%, at 417 pence at 10.45am GMT.