Japan Tobacco has made a takeover approach for Gallaher, the maker of Benson & Hedges cigarettes, in the largest proposed acquisition of an European target by an Asian company. News of the approach sent shares in Gallaher soaring as high as 19% this morning.

Japan Tobacco's proposed bid would rank as the biggest foreign acquisition by a Japanese acquirer as well the largest attempted takeover of a European company by an Asian peer, according to preliminary M&A statistics from data provider Thomson Financial.