Legal & General’s shares gained 3% to reach a near two-year high yesterday on rumours Swiss insurer Zurich Financial is preparing a takeover bid.
As at 13.00 yesterday, the insurer’s shares were up 2.95%, or 2.75 points, to 96p on the FTSE100. Shortly before 11am, more than 14 million Legal & General shares had changed hands.
The speculation comes amid a frantic period of merger talk hitting the insurance industry, with Aviva’s share price soaring yesterday on the back of rumours French peer Axa was lining up a bid for its general insurance arm.
This followed Aviva’s rejection of a bid from RSA for this part of the business, on the grounds its smaller rival had undervalued the unit.
The sector has also been buoyed by consolidation vehicle Resolution posting a £203m first half profit and confirming it is still on the trail for further acquisition opportunities in the UK life sector.
