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Morrisons shares rise on takeover chatter

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By Reuters
Morrisons shares rise on takeover chatter
FILE PHOTO: A Morrisons supermarket is seen in Weybridge, Britain, August 19, 2016. REUTERS/Peter Nicholls/File Photo   -   Copyright  Peter Nicholls(Reuters)

LONDON (Reuters) – WM Morrisons <MRW.L> shares jumped on Tuesday as traders cited market rumours that the UK supermarket chain could be subject to a takeover approach by U.S. online retail giant Inc <AMZN.O>.

They rose as much as 2.9 percent in midday trade and were up 1.9 percent by 1215 GMT, outperforming their UK peers. The FTSE 100 <.FTSE> was up 1.5 percent.

Chatter about the rumour was mentioned on the Financial Times’ Alphaville markets chatroom.

The chatroom moderator said: “There’s a mad story going round the traps about Amazon going for Morrison … Looks to me like wild speculation, but stranger things I guess…”

The supermarket chain has struck wholesale supply deals with Amazon and is widely seen as a potential takeover target for the U.S. company as it moves into bricks-and-mortar retailing after its takeover of Whole Foods.

Morrisons was not immediately available for comment.

(Reporting by Helen Reid, additional reporting by Paul Sandl; Editing by Josephine Mason)