Insurance provider Axa has reportedly been tipped as a potential bidder for UK motoring organization the AA, which is expected to be put up for sale next year.

The motor group is expected to instruct a bank to handle the sale of the company in 2007, once a financial report has been finalized. Possible buyers could then include Axa, a spokesperson from Mazars told Post Online.

Axa has been named as, not only would an insurance firm seem a likely candidate to acquire the AA given its strong brand and solid customer list, but Axa in particular would fit the bill as the European insurer has admitted its interest in a possible acquisition to re-enter the motor industry.

The Mazars spokesperson told Post Magazine that Axa may be interested, but that the purchase price, which is expected to be around the GBP3 billion mark, would probably be out of Royal & SunAlliance’s price range.