Shares in Ocado jump as much as 47 percent to an all-time high of 297 pence after the online shopping group signs a deal with supermarket chain Morrisons.
Shares in Morrisons, which will launch online sales from January 2104 using Ocado's expertise, rises 1.6 percent to 287.2 pence.
Panmure Gordon analyst Philip Dorgan says the deal is easily a better one for Ocado than it is for Morrisons.
"In particular, signing a 25-year deal in an online world with an unprofitable, unproven operator looks likely to cause problems," he says.
Analysts at Jefferies, however, say the deal looks like a good investment for Morrisons.
"For a contained capital outlay (c. 200 million pounds), Morrisons will get access to the most advanced food.com delivery experience currently available," they say.
"We believe this will put Morrisons in a much stronger position in supplier negotiations (as it will be able to quickly build a presence in the most rapidly growing channel within the industry)."
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