Takeover Talks Send Shares Roaring

Bid speculation combined with bullish talk from technical analysts has lifted shares of oil explorer BG to an all-time high of 323.75p, up 12.5p.

The group has been viewed as a bid target since it was demerged from the privatised British Gas utility in December, 1999.

Traditionally, Shell has been seen as the most likely buyer of the group but the latest name to be linked with the BG is Total.

The French oil giant is tipped to receive a windfall from the potential sale of its stake in the pharmaceuticals player Sanofi and could well use the cash to make a move on its UK rival. Although most of BG's revivals have the firepower to swallow the group, they will certainly be very keen not to overpay, which is likely given BG's recent share price performance. This time last year, the oil explorer's stock traded at about the 230p level, 40 per cent below the current price.