A huge American fund is buying the land around Wembley and shares are going crazy

Shares in Quintain Estates are going absolutely nuts rights now after American private equity fund Lone Star made a £700 million ($1.1 billion) bid for the company.

The 131p a share offer has sent Quintain shares jumping 23%, or 25.37p to 132.37p. If shares stay at that level it means investors are betting that Lone Star will be forced to make an even higher offer.

Quintain owns land around Britain's most famous football stadium - Wembley.

The property developer opened a designer outlet park on the Wembley land it owns in 2013 and has planning permission to build 1300 homes as part of a huge redevelopment of the west London area.

Lone Star's Angus Dodd says in a statement today: "The proposed acquisition represents a unique opportunity for Lone Star to gain further exposure to residential and commercial assets in London. Wembley Park is one of the largest and most exciting urban renewal projects in Europe and complements our experience in this segment of the market."

"We intend to contribute significant additional financial resources to help Quintain in its next phase of growth: to accelerate delivery at Wembley Park, building more homes more quickly and continuing the creation of a cohesive and exciting new community."

Quintain's board is backing the bid.