O2, once a part of BT, agrees a takeover bid from Spanish company Telefonica in a deal that could net investors £2 a share.
O2 jumped by 25% while the FTSE 100 Index added 2% or 100 points to top 5300 after Spain's Telefonica said it had agreed a takeover of the former BT Cellnet business that is the UK's second biggest mobile phone operator.
Analysts said the largest acquisition since France Telecom bought Orange in 2000 fuelled hopes of further multi-billion pound deals to mirror the tie-ups this year involving Allied Domecq and logistics firm Exel.
O2 jumped by 25% while the FTSE 100 Index added 2% or 100 points to top 5300 after Spain's Telefonica said it had agreed a takeover of the former BT Cellnet business that is the UK's second biggest mobile phone operator.
Analysts said the largest acquisition since France Telecom bought Orange in 2000 fuelled hopes of further multi-billion pound deals to mirror the tie-ups this year involving Allied Domecq and logistics firm Exel.