Shares in Scottish & Newcastle, the UK's biggest brewer, rose 12 per cent yesterday after the owner of Foster's beer and Newcastle Brown Ale became the subject of takeover rumours.

S&N's shares rose 64p to 595p, their highest since July 2002, as rumours emerged that the brewer could be a takeover target for Heineken, Carlsberg or a private equity firm. Volume in the stock was almost seven times its daily average.