Shares in Community Hospitals Group, which owns Cottingley-based Yorkshire Clinic, leapt by more than 80 per cent yesterday after private health-care business Bupa said it could launch a takeover offer for the company.

Bupa said it was "actively contemplating" making a bid at 620p a share for CHG, valuing the company at £220 million.

Shares in CHG closed up 254p at 562p after today's announcement.

The possible bid is more than twice CHG's market value at the end of last week when shares in the company closed at their lowest level since 1996.

CHG is the UK's fourth largest private hospital group owning 21 hospitals around the country.

Until today CHG's share price had suffered a steady decline from a peak last year of 512p as financial results have shown profit margins being squeezed.

The group's last full year financial figures - for the 12 months to September 1999 - showed total turnover was up by a third to £114 million while pre-tax profits rose 14 per cent to £17.6 million.

CHG said its shareholders should take no action on the Bupa announcement as the company was holding discussions with more than one possible buyer, but added it was too early to discuss any possible future for the Yorkshire Clinic.

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