A suspected stock market hoax in Germany tried to implicate Bermuda-based IPC Holdings, according to a Reuters report on Friday.

The international news agency claimed that a statement by a Deproma Sechsundzwanzigste Vermoegensverwaltungs AG - which claimed to be owned by IPC Holdings Ltd. - was emailed to Reuters and other news organisations detailing a take over bid for German brokerage Gold-Zack for three euros ($2.70) per Gold-Zack share.

Following the news on Friday Gold-Zack gained 86 percent in value as traders snapped up its stock after the apparent take over bid but shares plunged back when denials from the company and authorities revealed a hoax.

Investigation by Reuters revealed that no company under the name Deproma Sechsundzwanzigste Vermoegensverwaltungs AG seemed to exist, while a separate company called Deproma AG, a Berlin-based real estate developer, said it had nothing to do with any bid for Gold-Zack.

Meanwhile, IPC Holdings Ltd. denied that it was considering a possible takeover of Gold-Zack through a German subsidiary.

"IPC is in the property catastrophe reinsurance business and is not seeking control of such company," the company said, and added: "IPC does not have a German subsidiary and has no knowledge of Gold-Zack AG."

According to Reuters, the Gold-Zack hoax is likely to trigger an investigation by German financial and securities regulator BAFin, which said it had no knowledge of a takeover bid for Gold-Zack, based in Mettmann, near the west German city of Duesseldorf.