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Six months after the credit crunch doused the fires of M&A, recession fears are stoking the takeover flames. The scent of falling market valuations is spreading overseas and enticing hungry corporates seeking international opportunities. A new pack of names are being banded around the City as predators looking for cheap acquisitions.

Opap, the Greek gaming group, was last week in focus on possible interest in bookmaker William Hill (WMH). The shares of the company jumped 9% to 405.75p on the bid talk. Opap is nearly four times the size of Hill and specialises in lotteries and sports gambling. Prior to the market rumours, Hill’s share price had fallen 45% since October.

InterContinental Hotels (IHG) saw its share price slip 61% to 644p between June 2007 and early January. With £3 billion wiped off its market value, it comes as no surprise to see traders talk about an opportunistic bid. The latest speculation is that a Middle Eastern consortium is weighing up a potential offer.

Asian gaming group Guoco has raised its holding in troubled Bingo and casino operator Rank (RNK) to 4.09% from 3.17%. Guoco bought the Clermont Club in London from Rank in 2006 for £31 million.

The stake-building exercise may prompt Malaysia-based rival Genting to increase its current 10% holding to block a bid. Rank’s shares had fallen in price by two-thirds to 77.75p between January and November 2007 after earnings were hurt by the smoking ban and new restrictions on gaming machines.

Brandes, a US investment fund, took a bite out of B&Q-owner Kingfisher (KGF) with a 5% stake in mid-January, and is expected to take more.

Takeover rumours persist over Chinese insurance group Ping An lining up a bid for UK rival Prudential (PRU). Reports suggest Ping An may take an initial stake before a full takeover, as part of plans to invest in Western peers.