WHSmith in Woolworths bid speculation

Bookseller and stationer WHSmith is being linked with an unexpected bid for embattled general merchandiser Woolworths.

Woolworths was the subject of a failed takeover attempt worth 58p a share by private equity firm Apax Partners last year and WHSmith fought off a takeover by private-equity money a couple of years ago. Since then, it has been on a steady performance climb under the stewardship of chief executive Kate Swann.

City rumours put a price of 50p per share on Woolworths and although analysts are mixed in views about the likelihood of a WHSmith bid, the whispers have been enough to push Woolworths' shares up sharply.

Icelandic retail predator Baugur has also been named recently as a possible bidder for Woolworths and is understood to be keen to make another acquisition.