The stock rose as much as 7.7 percent, the biggest intraday gain since June 4, and traded 3.7 percent higher at 282 pence as of 8:58 a.m. in London.
Mothercare warned on Jan. 8 that full-year profit would probably fall short of analyst estimates and said it remained cautious about the outlook for consumer spending following a lackluster Christmas. The Watford, England-based retailer had lost almost a third of its value since the start of the year before the report on Tesco’s interest.
Tesco had considered a bid for Mothercare six months ago, the Sunday Times said, citing unidentified retail sources. The Cheshunt, England-based company hasn’t yet made an approach, according to the report. A spokesman for Tesco declined to comment.
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