Ethical retailer Body Shop said it is in talks with several bidders as it reports a big drop in half-year profits.
News of the takeover talks today lifted the shares 4-1/2p or 5.4 per cent to 90p.
The struggling retailer was a big hit in the 1980s with its natural products and environmentally friendly trading stance, but trade has been tough since others have invaded its niche market, and its share price has slumped.
Body Shop, which operates 1,900 stores in 50 countries, now makes most of its profit in Asia. In Britain in the last six months same-store sales fell 4 per cent, and last month it revealed it had received several bid approaches.
It also gave a profit warning ahead of day's results, which contained no surprises. Pre-tax profit for the half year, excluding exceptional items, fell to £3 million sterling from £7.9 million at the same time last year. The interim dividend was held at 1.9 pence.
Founder Mrs Anita Roddick and husband Gordon own about 25 per cent of the company's shares but in effect have control over a majority.
The Roddicks are believed to be keen to sell the business but only to the right "like-minded" buyer and for the right price. It is thought that Mrs Roddick may also want to maintain some link with the business.
In June, talks with Mexican suitor Grupo Omnilife failed and the shares took a dive. At the time there was talk of a bid of around £290 million but yesterday the share price had sunk to 84p, valuing the group at £168 million.