Core banking vendor Misys is in talks with its largest shareholder, ValueAct Capital, and private equity firm CVC Capital Partners about a potential joint takeover offer.
Last month Misys agreed the terms of a merger with Swiss rival Temenos in a deal ValueAct gave its "strong support" but which received a lukewarm reception from the markets.
Since then, the waters have been muddied by an approach for the UK outfit from Vista Equity Partners believed to be worth around £1.2 billion. Vista has until 19 March to announce a firm intention to follow through with the deal.
Now ValueAct has teamed up with CVC to begin discussions with Misys on a cash offer. The pair have until 2 April to announce a firm intention to make a bid.
Misys says it will carry on talking to Temenos and Vista and, because of ValueAct's involvement, has formed an independent committee of the board of directors, which excludes Jeff Ubben, to consider all of the proposals.
Shares in Misys rose nearly seven per cent in morning trading to 338.05 pence on the news.