Market Report: Invensys surges after bid rumours of 400p a share

As the market rally gathered pace yesterday, it was a hectic session for the gossips with Invensys among those back in the takeover spotlight.

The engineer jumped after reheated rumours emerged claiming a number of potential predators were lurking in the shadows and that it could receive an approach as high as 400p a share.

Some of those being linked with a possible move included China Southern Railway and Switzerland's ABB. However, traders refused to get too excited over the revived gossip, given that the names had all been mentioned before in similar whispers.

Nonetheless, the rail-signalling group was still driven up 9p to 212p on the mid-tier index, although it remains over 10 per cent lower than a week ago.

SABMiller surged by 7.02 per cent to 2,247.5 in response to vague talk that the Grolsch-brewer could be bought by the Budweiser owner Anheuser-Busch InBev in an $80bn (£52bn) deal.

Analysts have frequently put forward the idea of a merger between the two drinks giants, although SAB's agreed acquisition of Foster's has been seen by some as an attempt to protect itself from a predator.

In the wake of reheated bid rumours on Wednesday, Ferrexpo was still climbing as it managed to rise more than 10 per cent for the second session in a row. The iron ore producer charged forwards 28p to 294.8p, giving itself a further boost by revealing encouraging production results.

Rumours were also spreading around BP, although they were hindering, rather than helping, the energy giant. Murmurs the group has been talking down its forthcoming figures caused it initially to drop as low as 383.38p, yet the oil group denied the story and managed to close 2.5p better off at 392.8p.

The decision by the Bank of England to pump £75bn into the economy helped the FTSE 100 continue to bounce from the 15-month low it touched earlier in the week. Rising 189.09 points to 5,291.26, the top-tier index has now added more than 7 per cent over the last two sessions.

The eurozone banks were given a lift by the European Central Bank's announcement that it would provide emergency loans to the sector. Lloyds advanced 2.87p to 35.87p while Barclays and Royal Bank of Scotland rose by 12.4p to 167.85p and 1.76p to 24.36p respectively.

Prudential ended up in the gold medal position, soaring 62p to 590p, although traders were blaming a bear squeeze. Admiral, meanwhile, slipped 4p to 1,259p after analysts from Exane BNP Paribas gave the car insurer an "underperform" recommendation and claimed the group's share of the market was likely to drop.

Negative broker comment was also harming Next, which was pegged back 1p to 2,446p. Barclays Capital downgraded its advice on the high street fashion chain to "underweight", warning that the recent "Indian summer" would have had a negative impact on trading for the retailers.

The top spot on the FTSE 250 was grabbed by Exillon Energy after the explorer struck black gold in Siberia for the second time in three weeks, with the latest find driving it up 22.57 per cent to 234.1p.

Renewed talk that Howden Joinery could become a takeover target failed to spark the imaginations of investors. The kitchen supplier crept up 0.9p to 101p, despite Evolution Securities saying its "attractive business model... could prove too tempting for Travis Perkins".

Thomas Cook was lifted 3.33p to 40.65p after Morgan Stanley said the next six months could see the troubled tour operator's share price double if it could avoid needing to raise equity.

Elsewhere in the leisure sector, the market was checking into the blue-chip hotels group InterContinental. It was bumped up 31p to 1,028p following a positive overnight update from its US peer Marriott, with scribblers from Panmure Gordon saying the figure "underpins" their forecasts for InterContinental as they reiterated their "buy" recommendation.

It was its last session as a small-cap stock, but Galliford Try failed to go out with a bang, instead staying steady at 425p. The construction company will start trading today on the mid-tier index following the deletion of Autonomy (down 4p to 2,546p) from the indices after its takeover by Hewlett-Packard. Taking the software group's place on the top-tier will be the defence group Meggitt, which closed 63.6p ahead at 336p.

Elsewhere, Axis-Shield finally gave in to Alere, but the diagnostics company, which ticked up 18p to 468p, was certainly not happy about it. Although it advised shareholders to accept the US group's 470p a share offer, it still said the offer "fundamentally" undervalued it.

Datong slumped 26.42 per cent to 19.5p on the Alternative Investment Market after the Leeds-based tracking-systems provider, which issued a profits warning in August, admitted it would post a small loss for the year.

Start your day with The Independent, sign up for daily news emails
News
people
News
A boy holds a chick during the Russian National Agricultural Exhibition Golden Autumn 2014 in Moscow on October 9, 2014.
news
Life and Style
love + sex
Sport
Ashley Young celebrates the winner for Manchester United against Newcastle
footballNewcastle v United 1 player ratings
Arts and Entertainment
Victoria Wood, Kayvan Novak, Alexa Chung, Chris Moyles
tvReview: No soggy bottoms, but plenty of other baking disasters on The Great Comic Relief Bake Off
Sport
Ashley Young celebrates the winner for Manchester United against Newcastle
footballNewcastle 0 Man United 1: Last minute strike seals precious victory
ebooks
ebooksA special investigation by Andy McSmith
Life and Style
Tikka Masala has been overtaken by Jalfrezi as the nation's most popular curry
food + drink
Arts and Entertainment
Seth Rogan is one of America’s most famous pot smokers
filmAmy Pascal resigned after her personal emails were leaked following a cyber-attack sparked by the actor's film The Interview
News
Benjamin Netanyahu and his cartoon bomb – the Israeli PM shows his ‘evidence’
people
Arts and Entertainment
80s trailblazer: comedian Tracey Ullman
tv
News
i100
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Graduate Application Support Analyst

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Reach Volunteering: External Finance Trustee Needed!

Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...

Christine McCleave: FP&A Analyst

£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...

Recruitment Genius: Sales Executive - OTE £40,000

£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...

Day In a Page

War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable
Living with Alzheimer's: What is it really like to be diagnosed with early-onset dementia?

What is it like to live with Alzheimer's?

Depicting early-onset Alzheimer's, the film 'Still Alice' had a profound effect on Joy Watson, who lives with the illness. She tells Kate Hilpern how she's coped with the diagnosis
The Internet of Things: Meet the British salesman who gave real-world items a virtual life

Setting in motion the Internet of Things

British salesman Kevin Ashton gave real-world items a virtual life
Election 2015: Latest polling reveals Tories and Labour on course to win the same number of seats - with the SNP holding the balance of power

Election 2015: A dead heat between Mr Bean and Dick Dastardly!

Lord Ashcroft reveals latest polling – and which character voters associate with each leader
Audiences queue up for 'true stories told live' as cult competition The Moth goes global

Cult competition The Moth goes global

The non-profit 'slam storytelling' competition was founded in 1997 by the novelist George Dawes Green and has seen Malcolm Gladwell, Salman Rushdie and Molly Ringwald all take their turn at the mic
Pakistani women come out fighting: A hard-hitting play focuses on female Muslim boxers

Pakistani women come out fighting

Hard-hitting new play 'No Guts, No Heart, No Glory' focuses on female Muslim boxers
Leonora Carrington transcended her stolid background to become an avant garde star

Surreal deal: Leonora Carrington

The artist transcended her stolid background to become an avant garde star
LGBT History Month: Pupils discuss topics from Sappho to same-sex marriage

Education: LGBT History Month

Pupils have been discussing topics from Sappho to same-sex marriage
11 best gel eyeliners

Go bold this season: 11 best gel eyeliners

Use an ink pot eyeliner to go bold on the eyes with this season's feline flicked winged liner
Cricket World Cup 2015: Tournament runs riot to make the event more hit than miss...

Cricket World Cup runs riot to make the event more hit than miss...

The tournament has reached its halfway mark and scores of 300 and amazing catches abound. One thing never changes, though – everyone loves beating England
Katarina Johnson-Thompson: Heptathlete ready to jump at first major title

Katarina Johnson-Thompson: Ready to jump at first major title

After her 2014 was ruined by injury, 21-year-old Briton is leading pentathlete going into this week’s European Indoors. Now she intends to turn form into gold
Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot