The FTSE 250 index of UK-listed mid-cap companies has hit a record high, but bankers are divided about the strength of the market foreshadowing an upswing in mid-market mergers and acquisitions.

Roger Cursley, UK strategist at Investec Securities, the mid-cap broker, said: "I expect to see two kinds of predators looking for mid-cap companies this year: private equity firms, which need to do deals and are increasingly driven towards the quoted market as an alternative to private targets, and other corporates looking for earnings growth."