SHARES in JJB Sports raced ahead as fresh takeover talk swirled around the Wigan retail giant. Private equity house Permira emerged as a likely predator and was said to be preparing a bid of up to é600m.

JJB refused to confirm or deny the market rumours. A spokeswoman said: "We don't comment on speculation."

However, the shares ticked up 3.2 per cent, or 7.25p, to 233p, adding more than é17m to JJB's market value of é537m.

The chain, built by Wigan Athletic and Wigan Warriors owner David Whelan into a group with more than 430 stores across the UK, selling sportswear, replica kits, bikes and golf equipment, has long been considered a potential target for cash-rich private equity outfits.

Permira declined to comment, but a source said: "The firm is constantly looking at businesses and has a strong track record in the retail sector. It co-owns New Look in the UK and previously controlled Homebase. At the moment its interests include the Maxeda retail business in Holland and the Dinosol chain of supermarkets in Spain."

Permira also owns the Gala Coral bingo chain and the AA.

Analysts in Manchester were unanimous in believing JJB would become the subject of a bid.

Kevin Doran, of stockbrokers Brown Shipley, said: "I would not be surprised if JJB was on the radar of venture capital firms. It has a strong asset base with good margins and very good cashflows, which would certainly appeal to private equity buyers."

Roy Kaitcer, of Brewin Dolphin, said: "I think it's a possible target. The profits are at a low level, and it pays out a big dividend - last year it paid é24m to shareholders. A private equity firm would look at that figure and think it could be utilised to increase the profits. Coupled with that, David Whelan will, at some stage, be looking for an exit."

Nigel Mills of W H Ireland expects a bid of 250p a share to be tabled - equivalent to around é575m.

"I think it will go - it has lots of properties and a strong brand name, and a private equity buyer could gear it up on the back of those attributes," he said.

Private equity experts in the city also expect JJB to attract an offer. One said: "Permira is a likely candidate - it is going up and up in size of bid and is becoming more hostile." In Oct-ober, JJB unveiled plans to double the number of health clubs it operates, as its core retail business faces stiff competition from rivals such as Sports World and supermarket chains. Profits for the first half of this financial year rose only 0.5 per cent to é18.2m, despite an increase in sales of 12 per cent to é381.6m.

Last year, Sports World owner Mike Ashley built a 10 per cent stake in JJB, and he has been suggested as a potential bidder.

However, it is now thought more likely that the business will be sold to a private equity house.

Takeover talks in 2004 with Cinven were to no avail.

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