Drax shares up 20% on £1.3bn takeover speculation

Shares of North Yorkshire-based power company Drax Group have soared almost 20% so far this week on speculation that it could be a takeover target.

The firm declined to comment on weekend reports that it was being lined up for a deal by an unnamed energy group.

The reports claimed talks are taking place on a potential 340p-a-share deal that would value Drax at around £1.35 billion.

Drax shares, which closed around 223p on Friday, have since risen 19% to 267p.