THE Irish-owned and AIM-listed telecommunications group Stentor has said it does not know of any reason to explain the sudden sharp rise in the company's shares. Stentor shares jumped 8p to 26p sterling on Thursday on reports that potential bidders were stalking the shares.

Any bid for the heavily lossmaking Stentor would need the support of the Co-operation Retirement Benefit Fund, which controls more than 50 per cent of the equity following a £8.3 million rescue of Stentor last year. At the time of the rescue, chief executive Mr Gerard O'Keeffe said it would be three years before Stentor broke even.

In the six months to the end of June, Stentor losses rose from £1.6 million to £6.9 million (€8.8 million) but these preceded the restructuring and rescue of the group.

Losses of £6.5 million were run up in the year to March 1998 and it subsequently emerged that Stentor had debts of £14 million.