Mothercare Shares Surge on Report of Tesco Interest
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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