Following a failed attempt by broker Astaire, Alexander David Securities is in discussions regarding the acquisition of Hoodless Brennan Holdings, the parent company of HB Markets, according to a statement on the London Stock Exchange.

The acquisition would constitute a reverse takeover under the AIM Rules for Companies, and is subject to the completion of the company's due diligence on Hoodless Brennan and, among other conditions, shareholder approval.

Accordingly, trading on the LSE in shares of Alexander David, which recorded turnover of £2.3 million last year, has been suspended. The shareprice last closed at 0.45p on 5 August.

“This announcement does not amount to a firm intention to make an offer and there is no certainty that an offer for Hoodless Brennan will be made, nor as to the other terms upon which any such offer for Hoodless Brennan might be made,” said the statement.

The attempt by fellow broker Astaire to acquire Hoodless Brennan earlier this year, in a deal reportedly valued at £3.6 million ($5.8 million), failed because there was no prospect of gaining regulatory approval.

Last year Hoodless Brennan sold its online business to brokerage firm TD Waterhouse; it is understood the deal was valued at £3 million, however this information was not disclosed by the firms involved.