Sparkling deal: Jeweller Theo Fennell in takeover talks

JEWELLER to the stars Theo Fennell is in preliminary discussions that could lead to a takeover by EME Capital, a London-based boutique finance house with Middle East connections.

The company – whose customers include celebrities such as David and Victoria Beckham, pictured, and Elton John – said there was no guarantee EME would make a formal offer for the business.

The firm sells jewellery, watches and silver collectibles designed by its eponymous founder, who owns 16.1 per cent of the company.

However, it has been in the red since 2008 as the flagging economy has dampened demand for luxury goods, leading to a £1.2 million loss for the year to 30 April.

EME has until 3 October to either make an offer or walk away. The private equity group, which also has offices in Paris and Dubai, is best-known in the UK as the bankers to night club firm Soho House.