Cobra in takeover talks

Free trial analysis: Who is striking for Cobra?

AIM-listed broking group, Cobra, has announced it has received a takeover approach from a potential buyer.

The move follows a recent increase in the company's share price. Cobra stock has climbed almost ten per cent in the past week, including 4.6 per cent today.

In a statement to the stock exchange the company said: "Cobra announces that it has received an approach and is in discussions which may lead for an offer for the whole of the issued and to be issued share capital of the Company."

The statement added that the discussions may or may not result in a sale of the group.

It said: "It is emphasised that it is possible that no offer will be made."

Market sources have tipped Cobra as the next network to be acquired after Towergate paid £95m for the Broker Network in November last year.

The combined Cobra Network, comprising around 130 members, currently controls over £350 million in gross written premiums. In March, it reported an increase in operating profit of 56% and organic growth of 13%.

Last week the company allotted 208,000 new shares worth 90p to its members, equating to a total value of £187,587.

Cobra shares are currently trading at 102p, giving the company a market capitalisation of £39.41m.