British DIY retailer Homebase has identified three Irish stores for potential closure as part of its cost- cutting plans.

British takeover target Home Retail reported improved trading at its Argos stores and a bigger-than-expected cash pile yesterday, a week before a deadline for bids.

Share prices were sharply higher in midday trade following a rebound on Wall Street overnight on speculation about the possibility of a further US Fed interest rate cut this year, dealers said.