Investors returned to the London market today in anticipation of the next round of cross-border takeover activity.

One of the UK’s biggest ice cream makers looked set to join forces with a European counterpart after agreeing to a £182m (€265m) takeover today.

The London market struggled to stay above the 4700 barrier today after renewed weakness in the US dollar compounded some disappointing corporate results.

Richmond Foods, the UK ice-cream manufacturer, saw its full-year pre-tax profit jump by 28% as it continued to lift its share of the ice-cream market.