Kraft’s approach for Cadbury and a potential deal involving France Telecom’s Orange UK and Deutsche Telekom’s T-Mobile UK have raised hopes of a rebound in global dealmaking.

The sustained rally in global stock markets, which have surged 40-50 per cent from their March lows, has boosted the confidence of chief executives. Their optimism that the world economy is on the road to recovery could lead to more takeover bids as companies exploit depressed valuations in hard-hit sectors to grow by acquisition.