SDL’s first bid of 80p per share – which valued Alterian at £50m – was flatly rejected. However, Alterian now says that the improved price – valuing the firm at £68.7m – is at a level where it would be prepared to recommend it to shareholders if an all-cash offer were to be made.

Alterian’s shares rose 14.5p to 102p as the stock market reacted to the news. Talks are at an early stage, Alterian said, and a further announcement will be made in due course.

The company’s three founders left this year following disappointing financial results which saw a drop in sales and a £4.4m operating loss. The company, under new chairman Phil Cartmell and CEO Heath Davies (pictured), has been reviewing the business but had said it was not considering a sale.

In late October it announced a cost-reduction plan to shave £16.8m off the company’s outgoings.