MORE than 1,300 workers at B&Q's headquarters in Hampshire may soon have a new master if a potential £8 billion American takeover gets off the ground.

Shares in the DIY giant's parent company, Kingfisher, surged by more than five per cent at one point yesterday amid speculation that US peer Home Depot is considering the gigantic bid.

Speculation about a target bid has swirled around Kingfisher since it hived off electricals arm Kensa last July, with Home Depot seen as a likely suitor if it chooses to expand in Europe.

Business South reported in October that executives from Kingfisher had held talks with both Home Depot and US arch-rival Lowe's, but Home Depot reportedly has more money in the war chest.

Kingfisher had tried to downplay the significance of those meetings, claiming it was standard procedure to meet other retailers.

Home Depot is keen to acquire Kingfisher and its prize catch, B&Q, which was founded in Southampton, because B&Q is Europe's biggest DIY retailer.

It is understood Home Depot has little room to expand in North America. Wall Street investment bankers say Home Depot chairman Bob Nardelli could make a direct approach to Kingfisher chief executive Gerry Murphy.

Home improvements group Kingfisher employs about 27,500 people in the UK and operates 320 B&Q stores, including six stores in south Hampshire.

A spokesman for Kingfisher declined to be drawn on the rumours, saying: "We do not comment on market speculation. It's one of those stories we had before, and I'm sure we will have it again."

As well at those stores, a further 1,300 B&Q employees work at the retailer's HQ at Hampshire Corporate Park, Chandler's Ford.

It is too early yet to know what the implications, if any, will be for local staff, although many stand to gain financially if their shares continue to rise in value.

At one point Kingfisher shares were up 14.5p, or 5.2 per cent in early trading, at 296p, valuing the owner of B&Q in the UK and French off-shoot Castorama at almost £7bn.