Bid hopes continue to lift Home Retail Group

HOME Retail Group was in demand yesterday amid speculation it could be a target for a supermarket predator.

Shares in the £1.9billion Argos and Homebase operator climbed 5p to 231¼p as traders reckoned Wm Morrison, 1p higher at 279p, could go on the acquisition trail to build new revenue streams beyond groceries, a process that may also involve working with fashion guru George Davies.

Despite suggestions Morrisons could return £1billion to shareholders, Shore Capital’s Clive Black argued this “would not do Morrisons much good whatsoever until its strategic challenges are overcome”. Home Retail and Matalan are both seen as potential targets for supermarkets, but Black also flagged the possibility of Morrisons buying an online clothing retailer.

Source : David Shand - Express.co.uk