The FTSE 100 extended gains this afternoon as Cadbury snubbed Kraft's £10.2bn takeover approach.
London’s blue chip index was 81.61 points higher (1.68%) to 4,933.31 in late trading, with Cadbury shares up 40%.
Cadbury says the offer from the US food giant fundamentally undervalues the group.
Elsewhere, Associated British Foods is also doing well, up 4.13% to 845.50p – while the Lloyds Banking Group has advanced 4.59% to 106.45p.
Only two stocks have fallen by more than 1% today, with Petrofac down 1.43% to 895p and Thomson Reuters 1.31% lower to £18.77.
The Dow Jones is closed for Labor Day.
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