Investors worked up an appetite for Just Eat after analysts said the takeaway company could be a possible takeover target.
The upstart jumped 2.2 per cent, or 17.6p, to 819.4p after RBC Capital said its sophisticated data software could prove attractive to Dutch rival Takeaway and give it greater influence to compete with Delivery Hero in Germany.
STOCK WATCH - EASYHOTEL
Budget chain Easyhotel closed higher after revealing plans to open an £8.7million hotel in Milton Keynes.
Boss Guy Parsons said the acquisition of the 124-bedroom building is part of its strategy to offer affordable tourist and business accommodation in key locations.
He said: ‘Milton Keynes is home to many international businesses and boasts an impressive range of shopping and leisure facilities.’
Shares crept up 0.9 per cent, or 1p, to 109p.
The note, which considered the most likely internet merger- and-acquisition scenarios, also mulled the possibility of a takeover of Ocado and Asos.
It said Asos, Ocado and German fashion website Zalando were the 'most likely take-out candidates' in its coverage and lifted their price targets to 8100p from 7400p, 525p from 320p and €41 from €35 respectively.
Ocado has been plagued with takeover speculation, with American grocery giant Walmart rumoured to be mulling an bid for the online grocer.
RBC said its new price target reflects its anticipation for a deal being signed.
It said Asos and Zalando could be a target for Vera Moda owner Bestseller, which already owns 29.5 per cent of Asos shares and 10 per cent of Zalando's shares – citing Richemont's bid for control of Yoox Net-a-Porter earlier this week as precedent for such a deal.
It said: 'For the same reason that Richemont acquired Yoox Net-a-Porter, Bestseller could hypothetically seek to strengthen its efforts in ecommerce by taking full control of either group.'
RBC however, did also open up the possibility of a third party bidder such as Amazon swooping in on the websites to bolster its fashion business.
It said the move could force Asos and Zalando to consider a merger of their own in order to fend off the threat.
The comments sent Asos up 5.5 per cent, or 390p, to 7470p but Ocado dipped 4.7pc, or 24.2p, to 494.8p.