Shares in D1 Oils jumped by nearly one-half after the jatropha specialist revealed it had received "a number" of approaches over a tie-up in the latest sign of consolidation in the farm sector.

The group said that one of the approaches, which it termed "preliminary and conditional", might lead to a takeover offer.

The announcement, which D1 made after noting its shares had jumped 8.2% to 5.82p on Thursday, sent the stock soaring 49% to 8.75p by the close of trade on London's junior Aim market.

Consolidation wave 

The approach follows a series of high-profile deals in the agribusiness sector, with Canadian grain handler Viterra buying Australian peer ABB Grain, China's Agria buying a stake in New Zealand's PGG Wrightson and North America witnessing a long-running takeover wrangle involving fertilizer groups Agrium, CF Industries and Terra Industries.

Among smaller companies, Landkom, the Ukraine farm group which is also listed on Aim, last month said it had called off talks on a potential tie-up with an unnamed peer.

For D1 Oils, the approach comes towards the end of a difficult year, which has seen the end of a joint venture with oil giant BP, the shelving of plans to expand jatropha plantations, and given investors advance notice of its fifth fund raise in six years.

D1 shares, which topped 500p early in 2005, not long after the company was floated, hit a record low of 4.5p in July.