The health club operator Holmes Place has confirmed speculation that it is being stalked by rival groups including the private chain Cannons.

The news follows an announcement two months ago that Holmes Place management was considering a buy-out of the group, after seeing its value plummet on the stock market.

Shares in the gym chain gained almost 10% on hopes of the possible bid on Monday, but are still worth less than half that of their peak in 2000, when enthusiasm for the leisure sector was still high.

Further details are expected when Holmes Place reports its results on Wednesday.

Consolidation at last

Analysts have long called for consolidation in the health club market after the sector failed to sustain the momentum experienced in its infancy.

Earlier this year, premium chain Esporta was taken private by Duke Street Capital, and Cannons was bought back from the stock market by management in May last year.

Holmes Place said on Monday that it "has received proposals from a number of parties, including Cannons Group, regarding a possible offer for the business".

The company said it was still considering the offers.

A weekend press report suggested Cannons was willing to pay about £180m for the rival chain, which is currently valued at £171m on the stock market.

Shares in the group jumped 9.5%, or 14.5p, to 169.5p after it confirmed the bid offers.