Market Chatter: RSA shares rise on Zurich bid talk

PERSISTENT rumours of Zurich Financial Services launching a bid boosted shares in RSA Insurance, which closed up 3.9 per cent at 156.7p.

Traders said that RSA – formerly known as Royal & Sun Alliance – was the subject of "persistent market talk" concerning a bid from Zurich.

Last Thursday, RSA shares rose by 5.7 per cent following speculation of possible interest from Zurich. Some traders had dismissed last week's rumour because Zurich had pulled out of the race to buy the Royal Bank of Scotland's insurance business, making it less likely that Zurich would show interest in RSA in the traders' opinion.

More than 16.6 million RSA shares changed hands yesterday, compared with a full-day average of 19.4 million in the past 30 days.