Mothercare jumps on Tesco takeover talk

Talk of renewed interest from Tesco in languishing Mothercare have seen stocks in the baby care and clothes retailer jump over five per cent.

Reports that the supermarket has rekindled its interest in launching a takeover bid follow an announcement by Mothercare earlier this month that its full-year profits would be half what analysts were expecting.

The high street store has been hit by sliding customer numbers and heavy discounting.

The Sunday Time reported that Tesco contemplated Mothercare as a possible means to reinvigorate its UK offering. And recent falls in its share price could, suggests the report, see a new approach - although one hasn’t been made as yet.

At pixel time, Tesco shares were trading down 0.3 per cent.