Frenzied takeover speculation pushed the FTSE 100 to its highest close since September 2000 Friday and sent the FTSE 250 and All Share indices to record levels.

With takeover approaches for Reuters, up 25.1 per cent to 615¾p, and EMI, 8.2 per cent better at 246¼p, flushed out by 10am and then a €12.8bn private equity bid for Spain’s Altadis, City traders spent most of Friday’s session searching for the next takeover targets.