7th January - Carphone share prices leapt by 17.5 pence as the rumours hit London’s Stock Exchange. However, both Vodafone and Best Buy have been linked with potential bids before.

Juniper Research principle analyst Dr Windsor Holden is sceptical of the rumours, saying: “We shouldn’t dismiss either bid out of hand, but these rumours come at a quiet time of year.

“I would say a potential Vodafone takeover is more feasible and would create considerable restructuring of Carphone. Ultimately it would probably lead to large-scale closure of Carphone’s UK retail outlets and rival operators would be forced to review their relationship with the group.

“A bid from Best Buy is feasible, as it already has a small shareholding in Carphone Warehouse and could be interested in establishing a strong European presence. But I would say the chances of either group launching a bid is only 50/50.”