SPECULATON is mounting that DIY giant B&Q, which has its headquarters in Hampshire, may be bought by an American company.

Executives from B&Q parent group Kingfisher are due this week to hold talks with Lowe's, the world's second-biggest home improvement retailer.

Hundreds of staff at B&Q's headquarters at Chandler's Ford, near Southampton, will be watching developments closely.

It is too early to say what the implications, if any, will be for them if B&Q is sold off.

B&Q, which was founded in Southampton, is Europe's biggest DIY retailer and is regarded as a prize catch.

Kingfisher tried to downplay its communications with Lowe's, saying that it is standard procedure to meet other retailers.

The hares have already been set running with news that Kingfisher had been meeting bosses from Home Depot, Lowe's arch rival in the USA.

According to business experts, a deal in Europe is "imminent" for Home Depot in Europe. As ever, any bidding war will come down to a question of who can raise the most money to buy Kingfisher.

If this is the case, Home Depot reportedly has £3.1 billion on its balance sheet, while Lowe's has £1 billion.

Interestingly, B&Q's stores are apparently modelled closely on Home Depot's business lines.

Kingfisher chief executive Gerry Murphy and his head of international operations, Ian Cheshire, are expected to meet up with Lowe's senior vice president and its finance director at some point this week.