Broker Network has rejected an approach from a potential buyer, believed to be Towergate.

In a statement to the stock exchange on Tuesday, Broker Network said discussions had been held with a company, but the approach had been rebuffed.

It said: “It [Broker Network] has concluded that the terms and conditions of that approach are unacceptable and the board has therefore rejected the proposal.

“Discussions continue and a further proposal may or may not be made.”

But despite the rebuttal, a deal for the 167-strong network – responsible for transacting over half a billion pounds in premium – may yet be struck.

It is the second announce-ment in as many weeks on the back of tremendous volatility in the AIM-listed company’s share price.

Last week, Broker Network said it had received an approach from an interested party.

Though market sources have overwhelmingly suggested that Towergate is the potential bidder, it is believed that at least one other suitor could be involved.

AXA has also been tipped as a potential buyer. A source said: “There has been interest. There has been a fear factor.”

Neither AXA nor Towergate would comment on the speculation.

Broker Network held its annual general meeting last week, where all resolutions were passed.

A spokesman said there had been “no requirements out of the ordinary”.

Broker Network shares fell by 10% from 497p to 445p in the wake of the initial announcement on 12 October that it had received a preliminary approach.

But as Insurance Times went to press, the share price had soared to 479p.

The Broker Network’s market capitalisation currently stands at £77m. However, it is thought that, if eventually sold, the company could fetch a price well in excess of £100m.