Soon to be a Carrefour Wal-mart" in France?

Will we live July's emotional days all over again? Will we, in France, be lucky e-nough! to soon have a Wal-mart next to our homes?

Carrefour denied Monday it was holding talks with Wal-Mart, following a newspaper report that executives from the two companies met in what could be precursor to a bid for the French retailer.

"Carrefour denies that there have been any talks between Carrefour and Wal-Mart," said a company spokeswoman.

The Mail on Sunday said Wal-Mart (down $0.25 to $48.70, Research) Chief Executive Lee Scott and Carrefour Chairman Luc Vandevelde held talks in Versailles within the last month that may have been a precursor to a Wal-Mart bid for the French firm.

Despite Carrefour's denial, shares in the French retailer rose 2.1 percent to 39.41 in morning trading in Europe.

The stock was the biggest gainer on France's benchmark CAC-40 index, and Carrefour's rise also outpaced a 0.2 percent gain in the DJ Stoxx European retail sector.

Speculation of a bid for Carrefour, the world's second-largest retailer, has surfaced before. Global market leader Wal-Mart and Britain's biggest supermarket chain Tesco have repeatedly been named as potential suitors.

The Mail on Sunday report, which cited industry sources, said Wal-Mart may have discussed buying a group of Carrefour stores but talks could also have been held with a full takeover of Carrefour in mind.

Following the Danone episode, I guess silence and secrecy regarding such talks would be understandable.

[Hat tip: Hervé]