Shares in Marks and Spencer continued to rise yesterday as rumours mounted that an Icelandic group was building a 3% stake in the retailer.

Shares in M&S rose 5p to finish at 351.75p, with 23.8 million shares changing hands during yesterday.

Media reports said that the retailer has sent out Section 212 notices under the Companies Act which will force the mystery buyer to reveal their identity.

Retail specialist Baugur is rumoured to be the mystery stake-builder. The company already has a stake in the Big Food Group, which owns supermarket chain Iceland and wholesaler Booker.