Theo Fennell, the jeweller beloved of the likes of Victoria Beckham and Elton John, confirmed it is in talks over a possible sale of the company.

The company said it was in "very preliminary talks" with private equity firm EME Capital, which may or may not lead to an offer being made.

The statement came after rumours of a takeover caused the jeweller's share price to jump by almost a quarter in the last week.

The announcement brings the City Code on Takeovers and Mergers into play, meaning EME must, by not later than 5.00 p.m. on 3 October (the 28th day after Wednesday's announcement), either announce a firm intention to make an offer or say it does not intend to do so.

Founded in 1982, the British jewellery company designs and produces its own pieces in London and was a contender to be the Queen's jeweller after the post became vacant in July.

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