Shares in UK cake maker Finsbury Food Group shot up this morning (1 June) after the company revealed it had been sounded out about a takeover of the business.

Finsbury, which makes cake and bread for the UK’s major multiples, said it had received “a preliminary approach regarding a potential offer for the company”.

However, a statement to the London Stock Exchange raised questions about whether a formal offer would materialise.

“The preliminary approach was exploratory in nature and the directors believe that there is considerable doubt that an offer will be forthcoming from this party,” Finsbury said.

Finsbury’s shares climbed more than 23% to 26.5p at 09:21 BST this morning.

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In March, Finsbury reported a 45% fall in half-year profits due to rising sugar and chocolate costs, as well as charges linked to the integration of its two main cake units, Lightbody and Memory Lane.