Yule Catto, the chemicals company, is the latest subject of bid speculation.
The company's shares, which have performed well in recent weeks after positive earnings new, have jumped another 6.5%, up 14.9p to 244.9p, on talk of a possible 350p to 370p offer. US group Dow Chemicals was the name on traders' lips, although Germany's BASF has been mentioned in the past as a possible predator.
At 370p, the company would be valued at more than £1.2bn.
Yule is not the only business rumoured to be in the sights of a bidder, which is a sure sign of how frothy the market is at the moment. Yesterday Reckitt Benckiser - up 71p to £35.59 - was said to have caught the eye of Unilever or Procter & Gamble. And last week, among other speculation, private equity groups were said to be circling ITV, up 0.2p at 73.85p.
