Suitor for Micro Focus

The long-anticipated takeover bid for IT group Micro Focus could be on its way after the £750 million company was forced to admit today that an approach has been received.

The supplier of mainframe applications to the likes of Tesco and Boeing has made two profit warnings recently, while earlier this month it ousted chief executive Nigel Clifford less than a year into the job.

Today Micro Focus informed the stock market that it "has received a very preliminary, non-binding approach in relation to a possible offer for the company".

The group went on: "The board is currently considering its response to the approach.

"There is no certainty that any formal offer for the company will be forthcoming nor as to the price at which any offer might be made."

Shares in the group jumped 28.2p to 366.1p which values Micro Focus at some £750 million.

One year ago the group's shares stood at 546p.

Likely bidders include trade rivals such as Oracle and SAP or private equity firms in the technology sector.

Micro Focus has been hit by delays to upgrades for IT systems among its US clients.

Kevin Loosemore, the former chief executive of Cable & Wireless and IBM UK, has taken on the role of executive chairman with no plans to find a new chief executive.