Aviva takeover rumours resurface

22nd Jul 2011 10:47

Vague and unconfirmed takeover chatter regarding insurance behemoth Aviva surfaced late Wednesday night, sending its shares up nearly 3%.Two European peers - Allianz and Zurich Financial - were cited to be potential suitors for the general insurer and may be mulling over a possible approach worth 575p per share for Aviva. The company, which has been a subject of takeover rumours previously, could also be considering acquiring a UK company due to the strong Swiss Franc, investors speculated. In contrast, the Independent newspaper said there is a widespread scepticism regarding the rumours and quoted Panmure Gordon's analyst Barrie Cornes saying, "the likelihood was extremely low," given the issues affecting the whole sector, including the controversial Solvency II capital rules.Last year, mutterings of a bid by Resolution and a combined takeover by Prudential and Resolution for Aviva made the rounds. Shares of the FTSE 100 component rose 2.4% to 430.10p in morning trading in London.AR