Mike Ashley's Frasers Group PLC (LSE:FRAS) shares rose almost 8% to 679p, to top the FTSE 350 leaderboard on Monday.
The retailer announced a new £70 million share buyback, which will be managed by Barclays.
It comes after reports that the owner of Sports Direct is eyeing another acquisition to continue its recent streak of M&A.
A bid for SilkFred was reported by Drapers, after the fashion marketplace called in the administrators in October.
Other firms interested in the online marketplace include one womenswear brand and one off-price retailer, sources said.
It would follow a pair of recent property-based acquisitions for Frasers, which bought Swindon Designer Outlet last week and Scotland's Braehead shopping centre for £220 million last month.
Before that, the acquisitive group snapped up a majority stake in US upmarket chain The Webster, which has 13 sites in the States.
Shares in Frasers fell to a six-month low around 634p last Friday, on the back of interim results that showed lower profits, followed by the Swindon purchase.
** Update: Adds buyuback details **