Catering recruiter Berkeley Scott is discussing a possible injection of funding from a party that would take a majority stake. The extra funding would be raised by issuing new ordinary shares at 17.5p each, the mid-market price when the discussions commenced, in order to re-finance the firm's business.

Berkeley Scott, which listed on the Alternative Investment Market in 2004, has a stock exchange value of about £2m. Shareholders may have to agree to waive a City takeover rule that says any party acquiring 30% or more of a company must make a bid for the entire company. Finance director Will Coker told Recruiter there would be another announcement in the next month, but declined to comment further.