Takeover speculation drives market higher

Takeover speculation drives market higher: "The FTSE rose last month, driven higher by speculation about mergers and acquisitions.

However, the 1.2 per cent rise in the FTSE all share index in February was slightly lower than the average rise for the month of 1.9 per cent, figures from Halifax reveal.

'Over the course of February, the total shareholder return of the FTSE All Share rose by 1.2 per cent. One of the main drivers of the market continues to be that of takeover speculation, with companies who have strong growth expectations being the subject of potential bids,' said John Bearman, head of UK equities at Halifax.

The top stock in the FTSE 100 was airports operator BAA - with a 28 per cent rise in total shareholder return. This was driven by rumours of a possible bid by a consortium including Spanish construction company Ferrovial. "