Allied Domecq helps stir London market

Investors eyeing a potential £7.2bn takeover of drinks giant Allied Domecq helped stir the London market back into life today.

The prospect of some much-needed merger and acquisition activity, following the emergence of bid talks involving French group Pernod Ricard, sent the FTSE 100 Index up by 46.2 points to 4942.9 at its close.