Rumour Mill: Is Carphone Warehouse becoming a bid target?

Europe's biggest independent mobile phone retailer, Carphone Warehouse, has seen its share price jump on speculation that the company is being stalked by the U.S. group Best Buy.

The share price had risen by over seven per cent last Friday on persistent bid rumours--although financial analysts remain skeptical that anything will materialise in the short-term. However, Best Buy already owns three per cent of the company.

Approximately half of Carphone Warehouse's shares remain in the hands of the founders Charles Dunstone and David Ross, and most observers believe they will not want to relinquish control. The shares were trading at around £3.28, and those looking for some take-over activity expect a bid price--if it comes, being around £4.20 per share.

For more on this story:
- read The Guardian