Aviva PLC (LSE:AV.) shares jumped more than 8% on Friday as bid rumours continue to swirl around the insurance giant.
The FTSE 100 firm could be the subject of a £6 per share bid, according to The Times, with a number of parties interested in the firm, run by Amanda Blanc.
"City sources insisted that at least two potential suitors were running a slide rule over the business, attracted by its excess capital and strong cash flow," the newspaper said.
Talk in the Square Mile suggests the likes of Allianz of Germany, Intact Financial of Canada and the Scandinavian group Tryg are "considering their options, with at least one mulling a £6 a share proposal," the report stated, adding that an American insurer "is also rumoured to be interested".
The report sent shares in Aviva up 10% to above 427p, its highest since April, and pulled others in the sector higher too.
Prudential (LSE:PRU) shares rose 2.3% and Legal & General (LSE:LGEN) climbed 2.8%.
The jump in the shares shows the market seems to think the reports have some veracity, said analyst Russ Mould at AJ Bell.
He said the likely attractions for the reported suitors of Aviva are its forecast "strong free cash flow and excess capital, and its valuation is cheap".