Shares in French food producer Danone have rocketed amid rumours that PepsiCo is interested in taking over the business.

Although both Danone and PepsiCo have denied the rumours, investors are still keen to cash in on Danone.

Its share price has increased 6% and trading volumes have peaked at nine million from an average daily volume of one million.

“Never before have we seen a rumour result in such significant trading volumes,” an analyst said.