Shares at luxury audio specialist”¯Bang & Olufsen jumped after the Danish company said it was in talks with a potential buyer.
The group’s stock rose over 25% on the Copenhagen Stock Exchange in afternoon trading.
“The company has initiated a dialogue to investigate and analyse the firmness of these approaches,” B&O said in a statement.
As consumers turn to digital devices to consume music, B&O has been suffering three consecutive years of falling sales. In an attempt to draw in younger customers and push sales, the retailer launched a lower-priced range called B&O Play in 2012.
“Bang & Olufsen products are high luxury products and they have a relatively high price tag. That means they appeal to a relatively limited consumer group. We simply felt our competencies could be used for more than that,” Chief Exec of B&O Play Henrik Taudorf Lorensen, said at the time.
“We started a new brand with close links to Bang and Olufsen that basically applies the same competencies to a product group that is a little more broad in its reach.”
B&O has seemingly been looking for a buyer all year. Following the news, shares in the company were pushed to an approximate value of £282m.