Cast-iron cooker maker AGA Rangemaster dished up a treat for investors as it confirmed talks over a potential takeover by a US kitchen equipment firm.

The group behind the distinctive AGA ovens saw shares surge as much as 35 per cent after revealing discussions with the Middleby Corporation, which is based in Illinois and makes commercial and residential kitchen equipment.

The Leamington Spa-based group said there was no certainty of any formal offer or as to the terms of the offer, while Middleby stressed talks were at a “very early stage”.

Aga had appointed financial adviser Rothschild in January to explore strategic options for the company and said in April the investment bank had made “progress” on the review.

The firm added in April that markets for its appliances had strengthened at the start of the year.

Aga posted pre-tax profits of £700,000 for 2014, down from £1.1 million in 2013, as revenues rose to £261.5 million from £250.4 million.

The group, which also owns the Fired Earth tiles brand, has been increasing its international footprint and recently began sales in China after spending more than two years gaining the right accreditations.

It launched formally in Beijing in March.

PA