Woolworths was the subject of bid speculation yesterday after stakebuilding by an overseas property tycoon.

Iranian property investor Ardeshir Naghshineh fuelled the rumour when it was revealed, after the markets closed that he had upped his stake in Woolworths to 9.68 per cent.

He is understood to be trying to put together a bid consortium for the beleagured retailer.

The Times reported that past speculation suggested that Naghshineh – who has an estimated fortune of£500 million and who founded one of the UK’s largest privately owned investor-developers Targetflow – is thought to be interested in buying property leases from Woolworths.