Imperial Tobacco is expected to raise its offer for Altadis after the board of the Franco-Spanish tobacco company rejected its E11.5bn (£8bn) approach.

Imperial admitted last week it had approached Altadis with the offer, with analysts speculating that the bid would be too low.

The offer had failed to “reflect the strategic value of the company, its unique diversified assets, as well as future growth prospects,” Altadis said.