A Ladbrokes takeover has been at the center peculation this morning, following rumors of a potential £1.6 billion acquisition by rival Paddy Power. UK news source The Daily Mail had revealed the potential takeover bid by Paddy Power, which saw Ladbrokes share price jump 5% to 127p at time of this writing. The takeover speculation had witnessed +25 million Ladbrokes shares traded, as the operator may have become the target of a rival operator or a cash rich private equity firm.

The speculation of a potential Ladbrokes takeover by Paddy Power may surprise many within the industry. In March 2015 Paddy Power had announced that it would return an investor dividend of €390 million. Paddy Power who hit record earnings in 2014, recording corporate net revenues of €882 million, had further disclosed that following a review of the market its governance had not found any suitable acquisition targets.

In other Ladbrokes performance related news, financial broker Peel Hunt has today upgraded Ladbrokes stock from ‘hold’ to ‘buy’ position, stating that new Ladbrokes CEO Jim Mullen digitally focused strategy could drive substantial shareholder value and company growth.

Paddy Power is an Irish bookmaker founded in 1988 in Dublin, Ireland. The company conducts business through a chain of licensed betting shops in Ireland and the United Kingdom, and by operating Ireland’s largest telephone betting service. This story originally appeared on SBCNews.co.uk