Shares in Alphyra surged 25% this morning to €1.95, following confirmation by the company last night that discussions were being held with senior management over a management buyout.
The statement was issued in response to an article in yesterday's Irish Independent speculating that a bid was imminent.
According to Davy stockbrokers, stock exchange rules the management cannot bid less than the highest price which they have paid for shares in the last 12 months. The chairman, chief executive, and chief financial officer all bought shares in Febuary with the highest price paid €2.23.
This price would represent a 41% premium to Alphyra's share price before the MBO announcement.
The company stressed in its statement that it could not say whether the discussions would lead to a firm offer.
