Equity-linked investors have already been calling grey market brokers about a convertible bond issue from Pinault Printemps Redoute (PPR), the French retail group, before the deal has launched.

A strong rally in the stock has led market participants to speculate that the company will push ahead with a convertible issue in the next few days. PPR needs €700m ($624m) to acquire more shares in Gucci, the Italian fashion group, and has not ruled out using an equity-linked bond to raise the money. Good revenue growth in the first nine months of the year pushed the shares up 8.7% in the last two days, providing the perfect platform for the issue.