Afternoon Markets: FTSE surge continues as Cadbury snubs offer

The FTSE 100 has extended its gains this afternoon as Cadbury snubs Kraft's £10.2bn takeover approach.

London’s blue chip index is 81.61 points higher (1.68%) to 4,933.31, with Cadbury shares up about 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.