THE agency representing stars such as Geordie duo Ant and Dec and music mogul Simon Cowell yesterday said parts of the business had attracted private equity interest.

Formation, which also represents television presenter Fearne Cotton as well as Manchester United star John O’Shea, confirmed it had received ‘‘indications of interest’’ from buy-out firm Gresham.

Gresham is not considering buying the whole group, but Formation and the private equity firm have entered an exclusivity period while talks proceed.

Formation, which is based in Wilmslow, Cheshire, and has 135 staff, was founded in 1994 and floated on the AIM junior market in 2001.

It had a continuously highprofile role given its celebrity client base, and Simon Cowell and Ant and Dec, who are on screens each night this week on the live finals of Britain’s Got Talent, have helped to draw further attention to the firm.

Shares in the business jumped more than 50 per cent during the course of yesterday after Formation confirmed weekend reports of Gresham’s interest in buying parts of the group’s operating businesses.

Selling parts of the firm – which is currently valued at more than £20m – would see a significant payout for David Kennedy, the Irish property developer who owns a 53 per cent stake.

Reports circulating yesterday said that a buy-out team led by chief executive Neil Rodford was looking at buying five of Formation’s seven subsidiaries, including the talent- management agency James Grant, and Proactive Sports Management for sports stars.

Formation’s other operating companies include Formation Sports Capital, which helps football clubs speed up the pace at which they receive the funds for transferred players.

The firm also has a wealth management arm which offers financial planning, insurance protection and investment advice for its sports stars, entertainers and other wealthy individuals.

Gresham’s investments include the West Cornwall Pasty Company and the Perfect Pizza home delivery pizza chain.