Ocado shares leap on Amazon takeover talk

Shares in Ocado leapt as much as 18% on Tuesday as rumours that Amazon is circling the online supermarket gathered momentum.

The takeover talk has been doing the rounds in the City for several weeks after Ocado's share price fell to its lowest in more than a year, making it a more likely bid target.

The retreat was triggered by its failure to deliver an overseas partnership by its self-imposed deadline of the end of 2015, as well as concerns over increased competition from Amazon.

The e-commerce giant is stepping up its food offering in the UK and announced in December plans to add thousands of products to its Pantry service.