Jelf Group is in talks for a possible takeover by Marsh Ltd.
The possible offer was announced on the London Stock Exchange.
Marsh must announce either a firm intention to make an offer, or that it does not intend to make an offer on Jelf, by 5.00pm on 16 September 2015.
The statement published on the London Stock Exchange this morning said: "The Board of Jelf notes the recent press speculation and confirms that it is in discussions with Marsh Ltd ("Marsh") in relation to a possible cash offer by Marsh for the entire issued and to be issued ordinary share capital of Jelf.
"Discussions, which are ongoing, are at an early stage and there can be no certainty that any offer will ultimately be made for Jelf or as to the terms of any such offer.
"The Board of Jelf, which is being advised by Fenchurch Advisory Partners LLP ("Fenchurch"), will issue a further statement when appropriate.
"In accordance with Rule 2.6(a) of the Code, Marsh will be required by no later than 5.00 p.m. on 16 September 2015, to announce either a firm intention to make an offer for Jelf in accordance with Rule 2.7 of the Code or that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 applies.
"This deadline may be extended with the consent of Jelf and the Takeover Panel in accordance with Rule 2.6."
'We must not act as fast-buck profiteers'