Takeover speculation involving Corus and Signet could be fuelled this week as the pair are due to post first half results tomorrow.
The former British Steel firm has been linked with a number of foreign suitors following the merger of Mittal Steel and Arcelor earlier this year as talk of further consolidation grips the sector.
Hargreaves Lansdown analyst Keith Bowman said: "With the merger of rival steel groups Arcelor and Mittal still playing out in the back-ground, the results are in danger of being overshadowed by continued talk of merger or joint venture activity.
"Many analysts are convinced that Corus will not stand in its current form by the end of the decade. Speculation of a merger partner from Russia currently heads the rumour list.
"Potential corporate activity aside, strong steel prices should see the group continui ng to make progress, although rising production costs in the form of energy and coal prices do provide some investor concern."
Societe Generale forecasts Corus to make profits of £160 million in the second quarter compared with £240 million in the first, although the earlier period was boosted by a oneoff accounting credit of £96 million.
The average forecast in the City for full year profits is £850 million compared with £1.03 billion last year.
Gerald Ratner is said to be planning a return to the high street with a £200 million bid for Signet - owner of H
Samuel and Ernest Jones. But Icelandic investment group Baugur believes Signet would be a good fit for its growing retail portfolio that already includes jewellers Goldsmiths and Mappin & Webb. The supposed interest comes after private equity groups Apax Partners and Kohlberg Kravis Roberts pulled out of the running.
The company runs 591 shops in the UK with a 17 per cent share of our £3.4 billion jewellery market, but a large percentage of business comes from 1,221 US stores. Trading
has been strong in the US, meaning profits for the half-year are likely to be £57.5-£59.6 million, compared with £52.1 million for the first half last year.
Strong maiden results from property website Rightmove will be overshadowed on Friday by disappointment at the Government's decision to pull a key element of Home Information Packs, which are due for launch next year. Right-move had planned to spend £22 million developing HIPs related services, of which approximately £7 million had
already been spent. The company's decision, announced on July 26, to cut its losses on HIPs caused shares to tumble below their March flotation price of 335p.
The slump came despite an earlier statement that predicted interim results would be at the top end of market expectations. Analysts estimate profit before tax, excluding HIPs development costs, flotation expenses and share option charges, between £16.10-£16.4 million, with Rightmove pointing to the top of the range.
