Sainsbury’s shares rise as it is tipped as next takeover target

US company Fortress, which missed out on Morrisons, has said it is still eager to buy a UK firm

• Nils Pratley: Morrisons' new owner has plenty of wiggle room

Sainsbury's was the top riser on the FTSE 100 on Monday as investors bet that the supermarket chain could be the next target for a takeover after the US firm Fortress, which narrowly missed out in an auction battle for Morrisons over the weekend, said it was still keen on buying a UK company.

Shares in Sainsbury's rose by almost 5% to 298p, while Tesco was also one of the best performers on the UK's index of blue-chip stocks, up 2% at 253p, as traders speculated where Fortress and other private equity firms might focus their attention.