INVESTORS in Standard Chartered were in the money yesterday after takeover speculation sparked a rush for shares in the emerging markets bank.

Standard was the highest riser on the FTSE 100 Index, with gains of as much as nine per cent after a weekend report said a number of US banks were preparing to make bids.

Among those mentioned by The Observer to have the bank in their sights were JP Morgan, Citigroup, Wells Fargo, Wachovia and Bank of America.

Royal Bank of Scotland and Barclays were said to be interested, although the newspaper believed a bid may prove too expensive as Standard is presently valued at £18.75bn and a buyer would have to pay a premium for control.

The frenzy of interest among investors saw 8.5 million shares in Standard, which is based in London, change hands by lunchtime compared with the usual daily volumes of 5.9 million shares.

The stock reached a record high of about 1430p before falling back to 1401p by the close of business, a rise on the day of 76p. According to analysts, the attraction of Standard is its presence in Asia, where it generates two-thirds of its profits.

Standard paid $3.3bn for Korea First Bank (KFB) a year ago and large acquisitions in recent years have also included a controlling stake in Bank Permata, in Indonesia.

In a trading update last month, Standard said its consumer banking operations in Malaysia, China, Indonesia and Thailand were performing well, enjoying double-digit income and asset growth.

Standard also has a strong presence in Hong Kong and Singapore - although its recent growth has been slower there than elsewhere in Asia, particularly in consumer banking.

The bank employs more than 40,000 people and has offices in more than 50 countries.