Aviva break up bid rumoured

Resolution and Prudential are rumoured to be putting together a bid to break up Aviva, several papers report.

The Guardian said: “There was also vague bid talk surrounding Aviva, with the suggestion that Prudential, up 21.5p at 581.5p, and Resolution, down 1p at 74p, could team up for a break up bid for the business. Traders were sceptical, however, that such a carve-up would work.”

The FT said: “Aviva led the sector gainers, up 5% to 361½p as speculation revived that it could be vulnerable to a break-up bid led by Resolution.

“Several names were mooted as potential partners in an approach, including Prudential and general insurers. However, the complexity of any hostile bid led many to doubt the tale.

Hartford could be target

The Times said: “Prudential was at the heart of the rumours. Initially, a story was reheated that the men from the Pru were in cahoots with Clive Cowdery’s Resolution and looking to buy, and then break up, Aviva, the owner of the Norwich Union business.

“That, though, was thought unlikely. Rather more plausible was a suggestion that the Pru was gazing across the Atlantic to Connecticut and the Hartford Financial Services Group