The latest showdown between the U.S. and China may take place on the British high street.

Shares in London-listed Currys

surged 37% on Monday after Chinese e-commerce giant said it was considering an offer for the struggling U.K. electrical goods retailer.

The announcement raises the prospect of a bid battle with Elliott Investment Management after the U.S. hedge fund and private equity group said over the weekend it was considering making a 62 pence cash offer for Currys that valued the company at about £700 million ($883 million).

Elliott, known for its activist approach and which at the end of last year had $65.5 billion of assets, said there was no certainty it would make an offer for Currys. Under U.K. takeover regulations it has until March 16 to table a firm offer or walk away.

The offer from Elliott, which owns U.K. bookseller Waterstones, was at a roughly 32% premium to Currys closing share price on Friday. However, it was unanimously rejected by the retailer’s board as it “significantly undervalued the Company and its future prospects,” the company said in a statement released Saturday.

Curry’s stock on Monday rose above the Elliott proposal to 65p after

at the start of the week said it was “in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys”.

The share price of Currys, which sells electrical items such as washing machines, computers and fridges in Britain, Ireland and across Scandinavia, was trading around 500 pence in 2016, but has fallen back as its customers faced a cost of living squeeze, online-only competitors squeezed its margins, and investors tuned sour on mid-size U.K. stocks.

With its 815 stores, a large proportion of which are in the Britain, the retailer is the last big U.K. electricals chain with a physical store estate, which makes it a unique asset on the domestic stock market, according to analysts.

“In theory, that status deserves a premium takeout price. However, in this case, its unique status is down to it being the last man standing in an industry which has migrated online,” said Russ Mould, investment director at AJ Bell.

“A suitor would have to offer at least 71.1p per share to match the 51% average premium seen on UK-listed takeovers in 2023,” Mould added.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the putative bid battle for Curry’s was a sign that foreign investors saw bargains in Britain.

“This move is fresh evidence that U.K. assets are considered to offer significant value, still partly weighed down by the impact of Brexit, the weaker pound, and the stagnating U.K. economy,” said Streeter.

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