Andy Haste, RSA chief executive 300

LIVERPOOL stockbroker Panmure Gordon has dismissed reports that insurance group RSA could find itself in the position of prey, rather than predator, after claims of a takeover approach emerged.

RSA, which employs about 1,200 staff in the city including its general insurance business More Th>n, considered a £5bn bid for the general insurance interests of Aviva last year.

However, a financial website claimed that Aviva is now believed to be mulling over a £7bn bid for RSA and the group’s highly-respected chief executive Andy Haste. RSA has been linked with possible bids over the past fortnight, with rival Zurich thought to be interested.

But shares in RSA hardly moved yesterday and neither they nor Aviva would comment on “speculation”.

Panmure Gordon analyst Barrie Cornes said: “While we can see the logic for such a combination, as highlighted by RSA when it made its offer for most of Aviva’s non-life operation last summer, we think that RSA’s current share price will preclude any such acquisition. We view RSA as a well-managed business competing in difficult trading conditions with further upside to our 150p target price, but a valuation towards £7bn seems highly speculative and rather unlikely in our view.”