Oct. 5 (Bloomberg) -- Hagemeyer NV, the world's third- biggest electrical wholesaler, advanced to a two-month high in Amsterdam trading on speculation Rexel SA of France may make a bid.

Hagemeyer climbed as much as 10.7 percent, or 38 cents, to 3.93 euros, its biggest three-day gain since January 2004. The stock has increased 41 percent since Sept. 25, boosting the Naarden-based company's market value to 2.22 billion euros ($3.13 billion).

``The rumor is Rexel is going to make an offer and it looks like something is going to happen,'' said Marco Overmeer, a trader at SNS Securities NV in Amsterdam.

Rexel, the world's biggest electrical equipment distributor, raised 1.02 billion euros in a share sale in April and said it seeks purchases that would add 2 to 3 percent to sales. Hagemeyer, which would boost the French company's revenue by two thirds, ``is absolutely not for sale,'' Chief Executive Officer Rudi de Becker said on Aug. 17 following earlier speculation about a Rexel bid.

Dutch stock market regulator, Autoriteit Financiele Markten, questioned Hagemeyer over the recurrent speculation though the company wasn't able to say where it came from, it said.

``We are watching Hagemeyer's share price move,'' AFM spokeswoman Fransce Verdenzeldonk said today.

Hagemeyer closed at 3.97 euros in Amsterdam. The stock jumped 35 percent Jan. 26-28, 2004.

Hagemeyer spokeswoman Emilie de Wolf declined to comment on whether Rexel has made an approach. ``We still believe in our stand alone scenario,'' she said by telephone today. Rexel spokeswoman Penelope Linage wouldn't comment.

High Volume

``Someone is buying, big time,'' said Marcel Hooijmaijers, an Amsterdam-based analyst at Kepler Equities with a ``hold'' rating on the stock. ``I think it's something like a hedge fund or an activist investor trying to force something. In just a week, a quarter of the share capital has been traded. Those are exceptional volumes.''

Hagemeyer, a Dutch Indies trading company founded by the brothers Anton and Johan Hagemeijer in 1900, sells to builders and manufactures in Europe and the U.S. De Becker returned the company to profit last year after cutting jobs and selling a consumer-products operation. Shares of the company slid 8.7 percent after first-half profit trailed analyst estimates and de Becker said the company isn't for sale.

To contact the reporters on this story: Marcel van de Hoef in Amsterdam at mvandehoef@bloomberg.net; Jeroen Molenaar in Amsterdam jmolenaar1@bloomberg.net

Last Updated: October 5, 2007 11:59 EDT