Shares in exploration group Cove Energy have jumped 2% as speculation about a possible takeover swirled round the market.
It has added 2p to 100p as traders heard talk of an offer of perhaps 150p a share, with Royal Dutch Shell mentioned as a potential predator.
Cove was boosted earlier this week by a buy note from Citigroup, which said there was significant potential in its East African operations. Citi said:
Cove Energy is our pure-play pick on East Africa where it is primarily exposed to the Mozambique gas story.
The bank said it expected merger activity to pick up in the region with larger companies moving in to consolidate smaller players with existing resources. Shell for one is trying to expand in East Africa, as is Exxon Mobil.
