Shares in high street chain Woolworths have shot ahead by more than 20 per cent after a potential bidder confirmed its interest in a takeover.

Private equity firm Apax Partners, which helped fund the takeover of New Look last year, said it was at the early stage of considering a move - thought by experts to be worth around £700m.

Gain support

If it decides to proceed, Apax said it would approach the board of Woolworths to gain its support.

Hilary Cook, at Barclays Stockbrokers, said Woolies had been one of the companies she had forecast would be taken over this year.

Shares rose 8.5p to 49p - valuing the company at almost £700m.