An outsourcing group backed by Lord Hammond, the former chancellor of the exchequer, is among the suitors circling Telent, a major provider of digital infrastructure services.
Sky News has learnt that Amey, which endured years of financial difficulties before being taken over by two private equity firms in 2022, has tabled an indicative offer to buy Telent.
Industry sources expect a deal to be worth more than £300m, with a next round of bids due later this month.
Amey is part-owned by Buckthorn Partners, where Lord Hammond is a partner.
The outsourcer was previously owned by Ferrovial, the Spanish infrastructure giant, but ran into financial trouble before being sold just over two years ago.
It announced earlier this week that it had completed a refinancing backed by lenders including Apollo Global Management, HSBC and JP Morgan.
Amey is understood to be competing against at least one other trade bidder and one financial bidder for Telent.
Once part of Marconi, one of Britain’s most famous industrial names, Telent ended up under the control of JC Flowers, the private equity firm, as part of a deal involving Pension Insurance Corporation, the specialist insurer, several years ago.
It provides a range of services to telecoms and other communications providers.
Amey declined to comment, while Telent could not be reached for comment.