Struggling sportswear retail JJB Sports was back in the news again on Tuesday as it responded to rumours regarding a potential offer for the company.
Shares shot up in the first three hours of trading to around 15p, up 4.75p from Monday night's close, forcing JJB to release a statement to the stock market confirming that it has in recent weeks held discussions with its lending bank and a number of potential strategic partners and investors about raising additional financing for the company.
"Constructive discussions continue with the Company's lending bank and one of the potential strategic partners and have been widened to include other key stakeholders," the company admitted.
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The statement initially calmed down the share price, which fell below 13p around noon, but by the end of the day the stock was at 16p, its highest point of the day.
That reduced the share price's loss over the last year to 47.3%; at one point in the last 52 weeks it traded as high as 31p, but a series of gloomy trading statements and a cash call priced at 40p a share left many investors wary of the shares.
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