Shares in British bank Barclays surged more than 10 per cent on Friday amid talk that US financial services giant Citigroup may bid for the company.
By this morning the stock was the top FTSE gainer, up 5.9 per cent at 509-1/2p, having earlier touched 535p.
Dealers said a report on mergers and acquisitions Web site www.mergermarket.comcited speculation that Citigroup could bid up to 700 pence per Barclays share.
Barclays and Citigroup declined to comment.
