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The benchmark index had risen 1.4 per cent - or 69.74 points - to 4,921.44 at 11:46 BST, with Cadbury shares rising 40 per cent after it rejected the £10.2 billion proposal.
Associated British Foods also climbed on the back of stating that its full-year earnings forecast has been increased, with the company - which also owns clothing retailer Primark - seeing its shares add 4.1 per cent.
Elsewhere, increases in metal prices caused the commodities sector to perform strongly, as Vedanta Resources, Antofagasta, Lonmin and Xstrata all rose.
Market strategist Joshua Raymond said that shares in Cadbury "are in heavy demand" following the rejected takeover bid.
"Investors are hoping that despite their bid being rejected, Kraft will come back with another offer," he added, noting that many are optimistic the move will prompt an increase in mergers and acquisitions.
