NEW YORK (CNNMoney.com) -- RadioShack's stock price surged on speculation that the retailer might be headed for a merger, or seeking another type of deal with potential investors.
The stock for RadioShack (RSH), an electronics retailer based in Fort Worth, Texas, jumped 9% in midday trading on Friday.
Anthony Chukumba, analyst for BB&T Capital Markets, said the surge was "definitely" the result of a New York Post story speculating that the company is looking to merge with Best Buy (BBY, Fortune 500), or exploring a leveraged buyout with investors.
"I guess there was some talk about this a few weeks ago and it looks like it's rearing its head again," said Chukumba. "People probably think there's some credence to this."
But the analyst described a potential merger with Best Buy as "extremely unlikely," because the big box retailer already has a partnership with Carphone Warehouse, giving it exposure to the wireless business and eliminating any benefits from a merger with RadioShack.
"There's no good strategic buyer for RadioShack," Chukumba said. "Who would buy them? I would say there's a higher probability of a leveraged buyout than a strategic buyout."
He said some investors might find the company attractive partly because of recent improvements in the high yield market, and partly because the company has a strong balance sheet, with its $908 million in cash outweighing its $669 million in debt.
But a share buyback remains the greatest possibility for RadioShack, said the analyst, because "that's something that RadioShack, at the snap of its fingers, could do" without having to forge a deal with other companies or investors.
RadioShack spokesman Eric Bruner declined to comment.
"As a matter of policy, we do not discuss market rumors or speculation," he said.
Chukumba does not own RadioShack, but BB&T expects to receive compensation from the company for investment services in the next three months. 
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 12,454.83 | -74.92 | -0.60% |
| Nasdaq | 2,837.53 | -1.85 | -0.07% |
| S&P 500 | 1,317.82 | -2.86 | -0.22% |
| Treasuries | 1.74 | -0.01 | -0.80% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Bank of America Corp... | 7.15 | 0.01 | 0.14% |
| Sprint Nextel Corp | 2.62 | 0.09 | 3.56% |
| Cisco Systems Inc | 16.33 | -0.06 | -0.37% |
| Chesapeake Energy Co... | 15.81 | 0.23 | 1.48% |
| Ford Motor Co | 10.60 | 0.01 | 0.09% |
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