Digital giant Pace may be ripe for a takeover, according to a business expert.

Pace, which is based at Saltaire, saw its shares fall to an all time low of £1 this week, following its third trade warning in months.

The company, which produces set-top boxes for the digital TV market, saw £480 million wiped off its value when it made the announcement that it could not ship 300,000 units to its debt-laden client NTL because its insurers would not cover credit for the client.

Professor Arthur Francis, dean of the University of Bradford's School of Management, said: "The shares have fallen so badly at Pace because it cannot sell enough set top boxes.

"And, the reason why it cannot sell enough is because of the problems in the American market and the debt crisis problems of NTL and Telewest in the UK.

"What it has also done wrong, which it has done before, is not inform shareholders soon en-ough. Instead the company has carried on as if nothing is wrong.

"Now it is vulnerable to a take over.

"If its main rivals Scientific Atlantica take over they would probably shut the facilities in Saltaire."

Malcom Miller, chief executive of Pace, said this week that the company was expecting a shortfall in sales because of turbulent market conditions. But, he added: "In the next financial year, turnover is expected to grow by approximately 30 per cent, significantly from a mixture of deployment to existing overseas customers and new contract wins leading to new orders.

"Pace remains confident that it is well placed within its markets and the longer-term outlook for the industry remains positive."