SHARES in Exova have surged 13 per cent after the Edinburgh-based materials testing firm said it was in talks with three potential bidders for the company.

Exova said it had received proposals from a London-based rival, Element Materials Technology, and from the Jacobs Holding and PAI private equity firms regarding possible cash offers for the firm. “The Possible Offers are conditional on, amongst other things, completion of due diligence and the recommendation of the Board,” said Exova.

London Stock Exchange-listed Exova said there could be no certainty that any firm offer will be made for the company, which has a market capitalisation of around £620 million.

However, confirmation the company is in talks about a potential takeover will likely spark unease in Scotland.

Stock market-listed firms help maintain the credibility of Scotland as a corporate centre and generate valuable work for advisory firms such as lawyers and accountants.

A takeover of Exova by a rival would raise the prospect of jobs being cut by the enlarged group as it looks to generate synergies and to remove overlap.

Exova and Element Materials Technology are active in the oil and gas services market.

Testing work on the metals used on offshore facilities is an important income generator for Exova. The company has faced challenges amid the downturn in the North Sea oil and gas industry triggered by the crude price plunge, which has been accompanied by big cuts in spending. Chief executive Ian El-Mokadem said last month that Exova could see no sign of recovery in the North Sea.

The company employs around 60 people in total in its laboratories in Edinburgh and Aberdeen. It has around 200 employees in Scotland, including head office staff, out of a global total of 4,200.

In August US private equity firm Clayton Dubilier & Rice was reported to be assessing options for its remaining 53.9 per cent stake in Exova, which listed in April 2014.

The flotation left Exova with a £550m market capitalisation.

CDR bought Exova from Cheshire-based Bodycote for £417m in 2008.

Shares in Exova closed up 29.12p at 248p.