Leading cartons and labels maker Field Group, which has a major division in Bradford, today confirmed stock market rumours that it is in buy-out talks.

Shares in the group, whose performance has stalled recently, rocketed with the news as analysts were mystified about the identity of the Amersham-based group's suitor.

The company, which employs 750 at three production sites in Bradford, announced a dip in pre-tax profits in November - from £12.6 million previously to £11.9 million.

Field described the talks as "preliminary" and said they "may or may not" lead to an offer for the company.

Some dealers said the partner could be a big European company but others predicted it would be a British buyer or even a management buyout.

Alastair Irvine, paper and packaging analyst at Merrill Lynch, said: "It doesn't surprise me that someone wants to look at them. They are a well-run company, the market leader in cartons, and their shares have slid."

Field's shares fell after the company warned in November that sales of alcoholic drinks and tobacco were volatile, restricting the group's growth. The firm was hit by the Far East financial crisis which affected alcoholic drinks and tobacco packaging.

Yesterday shares jumped 55p to 281p on the news, adding about 24 per cent to Field's market value.

The Field Group was first listed on the Stock Exchange in 1929 but has had a series of owners since Reed bought it in 1965. Recession caused the Swedish group SCA to sell it to the management in May 1991 in a deal involving 600 staff and City institutions.

The company is one of the leading manufacturers of packaging in the country and over the years has supplied big name firms such as Kodak, Cadburys, Silk Cut and Chanel.

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