The British mining heavyweight Anglo American is expected to jump as trading begins after it confirmed it is  “reviewing” a takeover bid from its larger Australian rival BHP.

Anglo American futures gained 4.4pc compared to its closing price on Wednesday, when shares also climbed 4.5pc.

The owner of the De Beers diamond group did not disclose the price of the “unsolicited” offer, which must be sewn up before a deadline of May 22.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the deal could “send a fresh chill through the City of London”. 

She said: “There are concerns that if the deal goes through it could be the tip of the iceberg and more giants could leave the exchange.”

Read the latest updates below.