Debenhams shares soared yesterday as rumours arose that Mike Ashley could make a bid for the department store.
City AM reports that analysts have speculated that the Sports Direct owner could purchase Debenhams and subsequently combine the chain with House of Fraser to create a new larger business.
Debenhams shares stood at 11.3p on the morning of 13 August, and had risen to 13.4p at 8.30am today (15 August).
Following the purchase of HoF out of administration on Friday for £90m, Debenhams shares grew 20% in the last three days.
Sports Direct currently has a 29.7% holding in Debenhams, putting it just below the threshold at which it would be forced to make a takeover offer.