Shares in Lombard Risk Management rallied 17% at Tuesday lunchtime, after the group confirmed rumours that the risk and regulatory solutions provider, FRSGlobal, has approached the company concerning a possible offer.

Lombard, the provider of specialised software solutions for City traders, said that the approach by FRSGlobal, a Wolters Kluwer financial services company, "may or may not lead to an offer being made for the entire issued share capital of the company."

However, the board thinks that it is unlikely that an "acceptable offer" will be made. Nevertheless, "discussions are continuing and a further announcement will be made as appropriate."

Separately, Lombard was awarded a contract with French banking giant Société Générale for its COLLINE product, expected to generate more than £2m of revenues in the first two years.

"We are delighted to have Société Générale as another tier one client for COLLINE® and our first tier one client for our new advanced MIS Reporting module," said chief executive officer John Wisbey.

COLLINE "provides a consolidated solution for mitigating credit risk while meeting the growing demand for multiple global entities, cross-product margining, Central Counterparty Clearing (CCP), MIS reporting and electronic messaging," the group said.

Shares jumped 17% to trade at 8.62p at 13:11.

BC

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