Shares in BT Group have risen 4% on reports that the telecoms giant could soon become a takeover target.
BT dismissed the reports as "speculative".
The Times reported that several private equity firms were weighing up potential bids for the business.
But it quoted one telecoms expert as saying that the complex structure of a potential £20bn bid and BT's pension liabilities may deter would-be bidders.
BT said the reports were "completely speculative", adding that it had not received any approaches.
BT's shares were up 8.5 pence or, 4%, at 216.5p at lunchtime.
BT recently reported better-than-expected third quarter profits of £1.38bn, boosted by strong sales of internet services.