Cooper Energy shares jumped after the junior oil and gas producer said it had been approached by several parties for a merger or outright takeover.
Cooper shares were up three cents, or 7.89 per cent, at 41 cents at 1319 AEST.
In a letter to shareholders, chairman Laurie Shervington said talks with the interested parties were at an early stage and not at a point where a proposal could be put to shareholders.
The company has appointed Euroz Securities to advise it in regard to the approaches.
Mr Shervington also warned that a call by a three per cent shareholder to oust all of Cooper's directors could complicate and delay a possible merger or takeover.
Investor Edward Scott Smith has advised Cooper of his intention to request a meeting of shareholders to remove the directors and have them replaced with his own nominees.
"He also expressed a wish to appoint a managing director of his choosing and to proceed with a strategy of liquidating the company's assets," Mr Shervington said.
Instead, Cooper is interviewing its own candidates to replace current managing director Michael Scott.
