PSC Insurance Group Ltd (ASX: PSI) shares were storming higher on Wednesday before being slammed into a trading halt.
The ASX All Ords insurance stock was up 6% to $5.15 before the halt.
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Why is this ASX All Ords insurance stock jumping?
Investors were fighting to get hold of the company's shares today amid speculation that it could be the latest ASX All Ords stock to receive a takeover proposal.
In response to the speculation, the company has requested that its shares be suspended while it prepares to make an announcement. It stated:
The Company requests a trading halt pending an announcement by the Company with respect to media speculation in relation to potential takeover approaches for the Company. The Company requests the trading halt remain in place until the earlier of the Company releasing an announcement in response to the media speculation, or until the commencement of trading on Thursday, 14 March 2024.
What's the speculation?
According to the AFR, the $1.9 billion insurance company has held "informal discussions with at least two offshore insurance brokers." It has also reportedly hired Goldman Sachs to guide it through the preliminary takeover talks.
The company's managing director, Tony Robinson, didn't shut down the rumours when quizzed by the media outlet. He said:
At any period in time, we are talking to people and parties about ideas and opportunities. And that includes ideas around privatisation.
The rumoured suitors include US$55 billion giant Arthur J. Gallagher & Co. (NYSE: AJG) and the UK's Ardonagh Group.
But with the ASX All Ords stock reportedly looking for a price of $2.3 billion, it remains unknown whether either of these parties will bite.
PSC Insurance Group shares are up a modest 7% over the last 12 months, whereas fellow insurance stock QBE Insurance Group Ltd (ASX: QBE) is up almost 20%.
