ONE of Hampshire's leading business lights could be set for a multi-million pound pay day as takeover talk surrounds computer entertainment retailer Game Group.

The Hampshire-based chain, which is 400-strong in the UK and has 224 worldwide, confirmed it "is in discussions which may or may not lead to an offer for the company", but refused to disclose the suitor.

City speculation centres on either a management buyout or approaches from American suitors such as Game Stop, which have long sought a foothold in the lucrative UK market.

Analysts said a bidder would have to pay at least £323m to land the group, but the final price could be higher as Game generates large amounts of cash.

Chief executive and chief financial officer Martin Long, 38, who earned £568,000 last year, could be in line for a major pay out if a deal with rivals goes ahead.

Mr Long, who lives near Romsey, holds 235,000 shares in the company and 1,685,846 share options, according to the 2004 annual report.

A qualified accountant, Mr Long first became involved with the firm in 1993 but was made Game Group's financial director two years later, rising to deputy chief executive in 1999 and the top job in January 2004.

He formerly worked for business advisor Numerica in the region and has previously held the post of company secretary for Sunderland FC, a club he supports to this day.

Game, which has 15 Hampshire stores, including one at WestQuay, Southampton, and employs up to 200 at its Basingstoke headquarters, is believed to account for more than half of all sales in the UK leisure software market.

Shares have been under pressure for nearly a year after a lack of new hardware releases was then compounded by a shortage of PlayStation 2 consoles in the run up to Christmas, but the takeover talk sent stocks to a 52-week high.