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Speculation regarding a possible buy-out of property developer Minerva (MNR) is starting to gain ground, after a number of companies were named as potential suitors, driving shares in Minerva skywards. Like many property companies, Minerva’s share price has suffered over recent months on the back of the credit crunch.

However, this latest round of takeover talk has given the share price a welcome break, rising 16% since the start of January 2008 to 157p, although it has since slipped back to 142.5p. If market talk is to be believed, Canary Wharf operator, Songbird Estates (SBDB:AIM), is one company considering snapping up the property firm following indications that it may invest millions of pounds in West End property, an area of key importance to Minerva. It is also rumoured that UK property group Terrace Hill (THG:AIM) could be a possible contender, after reports suggested it had built a 6% stake in Minerva through contracts for difference. Meanwhile, further afield, New York-based LeFrak Organisation is a third real estate firm thought to be mulling a possible bid for Minerva.

If a takeover does go through, the acquiring company will be getting its hands on Minerva’s expanding property portfolio, which is primarily spread out across London. In a sector that remains highly turbulent, one of the key attractions to Minerva may be its presence in the more robust City of London office and high-end London residential markets. At the end of its financial year ending June 2007, the group had moved comfortably back into the black, reporting taxable profits of £16.3 million against a loss of £6.9 million the year before.