SABMiller is up 6% after a weekend report by the Financial Times said rival Belgian brewer InBev is eyeing the company.
The FT reported on Saturday that InBev is weighing moves to consolidate its share of the global beer market and has designs on either Anheuser-Busch or SAB Miller, citing people familiar with the company's plans.
InBev and SAB Miller, whose brands include Carling Black Label, Miller Genuine Draft and Peroni, have been holding informal discussions about a link-up, the FT said. It added that a US Justice Department review of SAB Miller's deal to merge its US operations with those of Molson Coors had slowed progress.
By mid-morning SAB Miller was leading the FTSE 100 risers, up 82p at £13.06p.
Moss Bros is one of the big losers this morning, down 13% to 39.75p after Baugur said it has decided not to proceed with its offer for the menswear chain.
The Icelandic investor said an offer was not in the best interests of its shareholders in a brief statement earlier this morning.
Baugur already owns a raft of British retailers including House of Fraser, Mappin & Webb and Hamleys.
