Direct Line calls 250p-a-share offer ‘highly opportunistic’ and says it undervalues company

Direct Line shares soared by 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 Belgian insurer Ageas that culminated in a £3.2bn offer in March.