The consortium led by Jones Group management is believed to be offering between £7.5 million and £8 million to buy the group's oil and fastener businesses.

It is understood that the group led by chief executive Mr Pat Nevin and the head of the oil division, Mr Aidan McKeever, is offering around £3 million for Jones Oil, £2.5 million for the British-based Minster Fuels and up to £2.5 million for Appian Fasteners.

A special sub-committee of the Jones board has been conducting the negotiations on behalf of the group but the company declined to comment on the management offer.

However, it is considered low by some in the market and could lead to a rival bid. At least one other party is known to be considering an offer.

At the close of business yesterday, the company - which also owns a 63 per cent stake in Blugas, the LPG distributor - was valued at £11.2 million on the Stock Exchange. Any sale must first be approved by shareholders who will scrutinise it closely to make sure that it makes as much sense for them as for the purchasers.

Although Jones has already said that heads of agreement have been reached with the management team, it has given no indication of a price. Jones, which has disposed of its shipping and manufacturing divisions over the last year, has had to defend itself against accusations of a "sweetheart management deal" following the sale of its radiators business to the Swiss group Zehnder for £1.2 million.

Meanwhile, Bord na Mona has confirmed it is in the process of taking up its share of the Jones Group's stake in Blugas. It is understood that Richmond Group, another minority shareholder in Blugas, is taking up the remainder of the stake. A BES scheme run by AIB owns the remainder of the company.

Under the terms of the shareholder agreement Jones was obliged to first offer its stake to the minority shareholders.