Direct Line shares soar by more than 40% after initial 250p-a-share offer was rebuffed as ‘highly opportunistic’

Direct Line shares soared by more than 40% amid speculation rival Aviva could return with an even higher takeover offer, as a flurry of deals lit up the London market.

Aviva’s rebuffed £3.3bn approach, which was revealed on Wednesday night, was 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.