Woolworths has seen its shares jump almost 20% today - albeit from a low base - after announcing a management reshuffle.
Lloyd Wigglesworth, the managing director of its EUK division - which sells DVDs and CDs to other retailers - is stepping down, prompting renewed talk the business could be sold to reduce the company's debt. Analysts believe both EUK and 2entertain, which is a joint venture with BBC Worldwide, could both be on the block. Woolworths is also rumoured to be restructuring its bank debt facilities.
Meanwhile Alliance & Leicester fell 5p to 720p after it revealed an increased writedown for structured investment vehicles, up from £55m in October to £185m at the end of December.
Numis and Collins Stewart have both issued sell notes, with the latter saying: "A&L has outperformed the UK banks by 23% in the past month during which time takeover rumours have persisted. We believe takeover is now more than fully priced-in and reiterate our sell call." The supposed predator was Spain's Santander, the owner of Abbey National.
Meanwhile, back at Mitchells & Butlers, the shares are now up 19p at 401p. Commenting on a possible takeover for the business, Mark Brumby at Blue Oar Securities said: "It could be seen as a rudderless bid-target with a caretaker management handing the company on to a bidder in due course. However, though a merger with Punch Taverns would make eminent sense, it's difficult to make the numbers work this side of the current economic slowdown and M&B would be a large swallow for a vulture fund with no synergies to bring to the deal."
Overall the FTSE 100 has come off its best level and is now at 5834.0, up 45.1 points. The FSA's warning about debt levels seems to have spoilt the mood a little, while traders are now nervously awaiting Wall Street's opening.
