Takeover frenzy gives FTSE three-digit boost

O2 jumped 41.5p, or 25.27%, to 205.75p after it confirmed it had agreed a 200p per share, £17.7bn cash bid from Spanish rival Telefonica, which said the deal would provide enhanced sales by giving it entry to two of Europe's largest markets, Germany and the UK. But dealers said there was a good chance of a counter-offer, with Deutsche Telekom capable of beating up the price if it chose to. The news also pushed smaller rival Virgin Mobile up sharply by 3.81% to 300p. A bidding war could also be brewing for P&O after the ports and ferries operator confirmed the weekend stories of a £3bn...