Virtual bidders are starting to dominate Europe's mergers and acquisitions landscape.

Last week, Baugur, the Icelandic investment group, indicated it wanted to make a £1bn (€1.4bn) bid for Somerfield, the UK supermarket group, without making a formal offer. Baugur followed in the footsteps of Deutsche Börse and Euronext, the two European stock exchanges that have declared their interest in bidding for the London Stock Exchange, but have stopped short of actually making an offer. Apax Partners, the private equity firm, has adopted a similar approach to Woolworths, the UK retailer, while Malcolm Glazer, the US sports entrepreneur, is employing virtual takeover tactics to try to secure a recommendation from the board of Manchester United, the UK football club.