Boss Chris Ronnie and Icelandic investor Exista last year bought founder Dave Whelan’s stake and there was talk last week that soundings were being taken in the City about a deal.
JJB is in the midst of a turnaround programme, including a reduction in store numbers. Kaupthing analyst Matthew McEachran said that if the speculation is correct, the retailer’s shares could climb as much as 30 per cent on the 125p price at the time.
If, however, there is no deal and the recovery plans disappoint, the shares could fall below 100p.
He said: “This is a tough one to call, but the content of the last trading update makes us believe it is worth hanging on.”