BOC Group said yesterday it had rejected a joint takeover approach from two rivals in a move expected to spark a bidding war for the British industrial gases firm. Shares in BOC jumped 3 per cent on confirmation of the approach as investors weighed the possibility of competitors battling for control of the company, analysts said.

"The bad news is that all the talks failed. The good news is that BOC is now in play," said Mr Philip Morrish, analyst at Paribas, who said the starting place for the bidding process would be the £14.20 sterling (€21.84) per share value of the Air Liquide, Air Products offer.

BOC did not name the companies involved, but French rival Air Liquide said yesterday it had been in contact with BOC over a possible merger.