Troubled support services group Amey, based in Sutton Courtenay, near Abingdon, has been targeted by a value investor.
Meditor Capital Management, which invests in risky companies on behalf of its clients, has increased its holding in Amey from less than three per cent to 14.69 per cent, after a sharp fall in the group's shares.
City analysts suggested Meditor had increased its stake in order to force a break-up, or bid for Amey.
Many of Meditor's clients are hedge funds -- volatile, open-end investment companies which offer investors high-risk large gains.
Amey shares have fallen 58 per cent since the resignation last week of its finance director Michael Kayser.
The move comes amid increasing disquiet among Amey shareholders over Brian Staples' position as chief executive.
But Amey chairman Sir Ian Robinson said Mr Staples had the full support of the board.
Shares in Amey fell 4p to 25p this week after company broker Deutsche Bank said Amey could be close to breaching two out of three of its banking covenants.
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