RAC has received an approach that could lead to a takeover offer, the roadside insurer admitted today.

Shares in the company jumped a record 17% as the news spread, giving the company a market value of £1bn.

In a statement the company said: “The board of RAC confirms it has received an approach which may or may not lead to an offer.”

The company failed to give details of a potential buyer but reports have pointed to private equity firms which fought for control of the AA when it was put up for sale last summer.

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