Scuffle of the week

City law firm Charles Russell faces questioning from the Financial Services Authority after one of its lawyers told the High Court that its client was in advanced takeover talks only hours before a Stock Exchange statement denying reports of a takeover bid.

Following a report in The Sunday Telegraph that was in takeover talks with French telecoms group Vivendi, shares for the telephone and internet directory company rose by around 60 per cent, only for the price to crash back down in the final minutes of trading after issued a statement denying the rumours.