Professional Indemnity (PI) specialist broker Dickson Manchester (DM) is to be bought by another company, rumoured to be Alexander Forbes.

Alexander Forbes chairman and chief executive John Percy-Davis said he could not comment. Alexander Forbes is the eighth largest broker in the UK.

A spokesman for DM said he could "neither confirm or deny" the move, but said DM was still seeking a "strategic alliance".

He said the company announced earlier this year that it wanted to further its growth with the help of such an alliance and this remained the case.

"We are not merging or buying another company, but we are still looking for strategic partners," he said.

Insurance Times reported in April that DM had appointed BDO Stoy Hayward Corporate Finance to investigate opportunities for an alliance.

At the time, DM's Charles Manchester said: "We are at an exciting time in the development of the business. Our clients like our approach to business and our business volumes continue to increase."

"This produces challenges over and above those created by the hardest market conditions for 15 years. We are investigating a number of interesting ways of taking things further," he added.