888 Holdings surged on Wednesday after it emerged that investor group FS Gaming Investments has built up a 6.6% stake in the company.

The stake was disclosed in a filing after the market close on Tuesday and the investor group includes Lee Feldman, the former chairman of GVC (now Entain), and former chief executive Kenny Alexander.

According to a Bloomberg report, the investor group could propose a change of leadership and strategy.

Analysts at Peel Hunt said: “This well-informed group of investors could contribute to finding a new CEO accelerating the existing strategy and finding new directions for growth.

“A bid is possible and, if it triggered a refinancing, has the potential to create value by reducing the burden of the debt service cost,” the broker said.