Deutsche Postbank rose sharply on speculation that Lloyds TSB was plotting an €11bn ($17bn) take-over bid.

As talk swirled that Lloyds was preparing an offer of €67 a share, Postbank climbed 6.8 per cent to €57.90. Lloyds sharply underperformed the wider banking sector. Although details were thin, the market was buzzing with reports that other players were also mulling bids for Postbank.