Cake-maker Finsbury Food Group has received a “preliminary” approach regarding a potential offer.

Yesterday the company’s share price rose by nearly 5% to 22.5p, valuing the company at £11.6m, amid rumours of a potential takeover.

However the company moved to calm speculation and claimed that “considerable doubt” remained as to whether a firm bid would materialise.

Finsbury, which was once chaired by Lord Saatchi, makes cakes for Tesco, Asda and Sainsbury’s.