Shares in ceramics and giftware group Royal Doulton jumped 8 per cent yesterday on speculation venture capital group Alchemy was eyeing it up as a takeover target.

The 200-year-old group, based in Stoke-on-Trent, saw stock rise 3p to 43p on the reports, valuing it at sterling £36 million.

Alchemy, which last year tried to buy car firm Rover, played down speculation it was poised to bid for the china firm.

A spokesman for the venture capital firm said: "They have had mild discussion which are not even early stage discussions, but just a chat.

"Really it is almost like meeting over drinks and arranging to have dinner at some point." A spokeswoman for Royal Doulton said: "We have no comment. It is speculation and the board doesn't comment on speculation." The reports follow a tough time for Royal Doulton, which in February reported pre-tax losses of £9.5 million on turnover of £183 million.

The group embarked on a major four-year restructuring programme in 1999 after sales of its china dropped, repositioned its brands with a focus on consumer lifestyle and improved design.

If a bid to take the group private went ahead, it would also raise speculation about whether Irish rival Waterford Wedgwood, which owns a 15 per cent stake in Royal Doulton, would be tempted to launch a counter-bid.

A spokesman for Waterford Wedgwood, which is chaired by Sir Anthony O'Reilly declined to comment yesterday. It is understood that there has been no contact between Alchemy and Waterford Wedgwood which bought the Royal Doulton stake last year in what was seen as defensive strategic move. Waterford Wedgwood's prime objective is to ensure that the company does not fall into the hands of another luxury goods company.