Shares in laboratory services small cap Source BioScience (SBS) gain 13.3% to 16.9p on the back of an informal, 18p a share takeover approach.

Investment managers Continental Investment Partners and existing 23.6% shareholder Harwood Capital are considering an offer which the Nottingham-based company says will not exceed 18p a share.

Under takeover rules, the potential acquirers have until 5pm on 1 July to make an offer or walk away.

SOURCE BIOSCIENCE - Comparison Line Chart (Rebased to first)

An 18p a share offer from Continental and Harwood would value Source at £62.8 million, a 21% premium to Thursday’s (2 Jun) 14.8p closing price.

Source delivered revenue of £26.3 million and adjusted earnings before interest, tax and non-cash earnings (EBITDA) of £5.8 million in the year to 31 December 2015.

Net debt was £3.7 million at the year-end.

Source provides products and services that help pharmaceuticals develop new and better drugs.

Issue Date: 03 Jun 2016