LONDON (Bloomberg) — Shares of Prudential Plc, the UK's second-biggest insurer, climbed 3.3 percent on speculation that the company is a takeover target.The stock rose 23.5 pence to 731.5 pence in London, valuing the company at $17.9 billion ($35 billion). It is up 4.6 percent this year, the most among nine stocks in the FTSE All- Share Life Insurance Index, down 3.3 percent.

Barclays Plc's talks to acquire ABN Amro Holding NV are fuelling other takeover speculation, said Kevin Ryan, an analyst at ING Financial Markets in London, who has a "hold" rating on Prudential. "There's a general market enthusiasm, and a feeling of, what's next?"

Prudential spokesman Jon Bunn declined to comment.

Reports usggested that US insurance giant AIG might be preparing a bid.

Merrill Lynch & Co. analyst David Nisbet raised Prudential's "fair value" share price five percent to 829 pence yesterday.