Diageo was among the few fallers on Thursday as the FTSE 100 returned to its 10-month high.

Acquisition talk helps
lift Cobham

Cobham was up 0.8 per cent to 201p amid growing speculation that the defence and engineering group is on the hunt for acquisitions.

Dealers believed that Ultra Electronics, down 0.4 per cent to £12.30, was among Cobham’s potential targets.

The group has also been linked as a potential merger candidate with Meggitt, the aerospace engineer. Meggitt closed up 1.4 per cent to 205½p.

The spirits maker slipped 0.3 per cent to 939½p after both ING and Evolution Securities downgraded the stock ahead of the group’s results next week.