Reports that Sainsbury’s considered swooping on Mothercare has boosted the struggling babywear specialist’s share price.
According to The Press Association, the acquisitive grocer mulled placing a bid for Mothercare in recent months.
Although the grocer stopped short of tabling an offer, the emergence of its interest caused Mothercare’s value to leap 17% on Thursday to 20.5p per share.
Mothercare is currently valued at around £30m.
It comes just days after Mothercare axed chief executive Mark Newton-Jones and brought in former Tesco director David Wood to steer the firm’s turnaround.
Mothercare drafted in advisors last month to oversee a refinancing with lenders as the business worked to stave off administration.
Both Mothercare and Sainsbury’s declined to comment.