Shares in Britain's biggest home improvements retailer Kingfisher rose more than 3 per cent on Tuesday on market talk that US rival Home Depot is considering a takeover.
Home Depot said it would not comment on market speculation.
By 2 p.m. shares in Kingfisher - the owner of do-it-yourself chains B&Q and France's Castorama - were up 0.9 per cent at 289-1/4 pence, giving the company a market value of more than £650 million sterling. The shares had earlier risen as high as 290-3/4p.
Trading volume was robust, with just under 17 million shares changing hands, exceeding the stock's average daily turnover. Dealers said the speculation, which has swirled around the stock since the company demerged electricals arm Kesa in July, resurfaced yesterday.
"Kingfisher is this very clean business model - it's a pure DIY concern. This is an interesting firm for them [Home Depot] to look at," said a dealer.
Home Depot is the world's largest home improvement retailer and competes with rival Lowe's Cos in the United States.