STOCKS NEWS EUROPE-Ahold gets lift from M&A talk, Delhaize

Ahold (AHLN.AS) shares jump 6.4 percent to a 9-month high of 9.265 euros on speculation the Dutch grocer may be about to hit the acquisition trail, or could become a target itself.

The move is helped by positive results from Belgian peer Delhaize (DELB.BR) and a general move into defensives in a falling market, traders and analysts say.

Traders say talk has resurfaced that British group Tesco (TSCO.L) might be interested in a bid for Ahold, after such a move was tipped by analysts at ING earlier this week. [ID:nL2300601]

Analysts also note speculation that Ahold itself might be gearing up for acquisitions after it announced a management reshuffle that will free up two of its top executives to focus on growth. [ID:nL5438706]

RBS analyst Justin Scarborough thinks it unlikely that either Tesco will bid for Ahold, or that Ahold will make a big acquisition. Instead, he thinks the group will use its cash pile to pursue a mix of smaller bolt-on deals and a return of cash to shareholders.

He rates the stock a "buy," but thinks it could pause after surging about 10 percent this month.

Tesco and Ahold are not immediately available to comment.

Reuters Messaging: rm://mark.potter.reuters.com@reuters.net