Possible joint bid for ailing Ofex

A POSSIBLE joint bid for the Ofex market was in prospect today after the ailing market for fledgling companies announced it had received a number of approaches.

Zyzygy, a cash shell-turned-investment company which revealed its hand yesterday, may lead a bid involving other backers, possibly including one or more stockbrokers. However, 535X, a rival service for matching buyers and sellers of small company shares which made an informal approach last week, said it was not involved in the latest moves.

Zyzygy financial adviser Peter Hoskins said: 'We are one of a number of companies showing an interest and hopefully something good will come of our discussions.

'I would hope anyone who would want to assist the company will do so for the benefit of emergent technology companies.'

Zyzygy recently took a stake in Sareum, a biotechnology company due to float on Monday on the Alternative Index Market, a market for smaller companies that has proved much more successful than Ofex.

Hoskins said the move for Ofex, which is still controlled by the Jenkins family, was in line with the company's strategy.

'We are looking at championing smaller companies where there is a tremendous gap in funding from early-stage research to what you might regard as early-stage right through to the market,' he said. 'The Jenkins family has done a tremendous job and there are opportunities to extend the Ofex concept and upgrade it.'

He would not be drawn on who else might be involved in a deal for the market or on any plans if it were successful. But he said: 'It goes without saying that there is a requirement for cash and it also goes without saying that we will be looking at the strategy and positioning of the market.'

Ofex, where shares in companies such as Arsenal FC's holding company and brewers Shepherd Neame and Adnams are traded, has been struggling to raise new finance since saying last week that it only had enough cash to last until the end of November. It also revealed that first-half losses had more than doubled to £533,000.

Having seen 24 companies leave the market and a number announce plans to do so, the market has been desperate to enhance its attractions. Management hopes to split off the more-actively traded shares into a 'premier league'.

Hoskins controls Billam, a Swiss investment company that recently took an 18% stake in Zyzygy. In 2000, he was involved in taking a stake in TigerEx.Net, an internet-based order routeing company that was meant to bring together stock exchanges, institutional banking houses and broker-dealers.