Kingfisher shares jump on bid talk

On Monday May 12, shares in Kingfisher jumped 10% at one point during morning trade on talk that the retailer is being stalked by a US private equity group.

Stock market traders said there are rumours circulating of a bid for Kingfisher at 195-225 pence a share. The shares were trading around 155 pence each by mid-morning.

Kingfisher owns the B&Q chain in the UK and Castorama in France. However, with the UK housing slow down the prospects for B&Q don’t look overly promising. However, the outlook for the French business is better as the group has sought to build up the operation.

Nonetheless, a tougher market for home improvement products has seen Kingfisher cut its dividend and scale down its investment plans.