IAG watching out for potential bidder

SYDNEY - Insurance Australia Group, Australia's top home and car insurer, has hired a market research firm to keep an eye on heavy trading in its stock as speculation of a takeover bid swirled, the Sydney Morning Herald newspaper reported today.

IAG's shares have surged 6 per cent this week despite a disappointing annual result on Friday, sparking speculation of an imminent takeover bid, the paper said.

IAG was "understood" to have hired Orient Capital to watch those behind heavy trading in its shares, the paper said.

- REUTERS