Management at Staffordshire computer company Instem yesterday announced plans to take the business back into private hands.

Investors are being offered 210p for their shares - a price they have not achieved for more than ten years. At the end of last week, venture capitalists backing Mr Gare and finance director Mr David Sherwin, who between them have a near 15 per cent stake in the company, bought the shares of the company's largest investor, American industrial group Harnischfeger.

The acquisition gave management and Metsin, a company set up by venture capitalists Alchemy Partners to buy out Harnischfeger, a majority stake in Instem and yesterday Metsin made its offer for the remaining 49.9 per cent of the shares.

The 210p per share cash offer is 20 per cent higher than the value of the shares before the Harnischfeger buy-out was announced and the best price for ten years. The whole deal values the company at GBP9.8 million.

Corporate financiers Rickitt Mitchell is making the offer on behalf of Metsin. Instem's shares remained at 205p yesterday after climbing 30p on Monday.

Rickitt Mitchell advised Metsin.