Johnson Matthey shares soar after US conglomerate buys stake

Shares in struggling British chemicals producer jump after fund linked to Standard Industries takes 5% stake

Shares in chemicals producer Johnson Matthey have jumped by a fifth after a US industrial conglomerate bought a stake in the struggling British company, in a move that immediately prompted takeover speculation for one of the UK's most venerable large businesses.

Shares in the company, listed on London's FTSE 250 index, soared by as much as 30% on Friday after a fund linked to New York-based Standard Industries took a 5% stake. Shares retreated to an 18% gain at midday in London.