Struggling Raymarine, the producer of boat electronics, is holding discussions with the US satellite navigation firm over the issue of acquisition of its business.

Portsmouth-based Raymarine's market value has plunged from £390 million in 2007 to £10 million, indicating the decline in the demand of its products.

The shareholders are feared to get nothing from an acquirement.

Stockbrokers said a bid worth £20 million (excluding debt) would be sufficient to hit the deal.

However, Analyst Oliver Wynne-James said, "The Company has an uncertain financial future unless new funds are raised or a new owner emerges."

Raymarine is famous for producing leisure boat electronics such as GPS, autopilot and fish-finding technology.

Last year, Raymarine reported £11 million profit, a drop of over 50 percent. In addition, it lost £4.9 million in Foreign exchange.

In April, Raymarine was burdened with a net debt worth £88.4 million plus total banking facilities worth £104.2 million.

In the recent trading, shares of the company closed at 16½p, gaining 27 percent.