Royal & Sun Alliance's share price surged 6.25p to close at 138.25p yesterday as speculation mounted about a possible 165p takeover bid.
At one point, the insurer's stock price hit 142p as reports placed a number of potential buyers in the frame, including Warren Buffet's Berkshire Hathaway and Axa.
R&SA recently posted a pre-tax profit of £865m for 2005, up from £38m the previous year.
