Shares in Direct Line surge after insurer rejects £3.3bn bid from Aviva

Insurer says 250p per share offer was highly opportunistic' and undervalues the company

Direct Line shares surged more than 40% on Thursday after the insurer rebuffed a 3.3bn offer from Aviva, prompting speculation that the company could attract a higher offer.

Aviva's approach, which was revealed on Wednesday night, is the third rejected by Direct Line this year, with the company having snubbed two previous bids by the Belgium insurer Ageas that culminated in a 3.2bn offer in March.