Giles has run the slide-rule over rival broking group CBG with a view to buying it, Insurance Times understands.

Insurance Times reported late last month that CBG was courting potential buyers, and that CBG’s stock market listing may be a draw for would-be suitors.

Giles has plans to float in 2012, and performing a reverse takeover of an already listed broker could give it a cheaper, faster route to market. However, market speculation suggests Giles would be more likely to delist the broker if the purchase goes through.

Giles declined to comment.

CBG’s shares, which trade infrequently, are now worth a fraction of what they were when it made its debut on the London Stock Exchange’s Alternative Investment Market (AIM) in 2003. It’s share price closed on 5 July at 19p, although the stock was trading at 21p in the morning session today. The shares were valued at 37.9p on 4 November 2003 – its first day of trading.

Last year, CBG made an after-tax loss of £661,000, compared with £186,000 in 2009. However, this included a £944,000 loss from the disposal of its personal lines business in February 2010.

The pre-tax loss from continuing operations, excluding the personal lines loss, was £136,000 in 2010, compared with a profit of £36,000 in the previous year.

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