esure Group PLC (LON:ESUR) shares gained 5% this morning after the Sunday Times said the insurer's biggest shareholder, Peter Wood was looking to sell his 30.8% stake in the firm. sparking takeover speculation.
The newspaper reported that Wood held informal talks with potential buyers over a deal to sell his stake in the Shelia's Wheels firm, which would trigger a bid for the whole business, citing what it called senior City sources.
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Other insurance company bosses also claim to have been approached by Wood in recent months, the Sunday Times added.
It pointed out that a merger with a US insurer was considered to be the most likely move, adding that sources claim Wood has indicated he could have an agreement in place by next month.
Last year, the FTSE 250-listed denied a Sky News report that it had been approached with a potential takeover offer.
In early trading, esure shares were up 4.8%, or 12.5p at 275.1p.