Asos shares surge on takeover talk

Shares in online retailer Asos surged on Wednesday amid rumours it could become a takeover target.

Shares in online retailer Asos surged on Wednesday amid rumours it could become a takeover target.

The stock jumped 310p or 13.2% to 2658p by 11:22 in London, building on Tuesday's rise, as traders chewed over talk that at least one big US company is considering a bid.

There was speculation that a potential buyer could be Ebay, which is thought to want to improve its presence in retailing rather than simply remain an online auction hub.

Asos shares have lost more than half their value this year after a fire hit the company's Barnsley warehouse in June.

The company also issued a profit warning in June, saying the strong pound had resulted in slower international sales growth.

PW