British motoring association the AA has revealed takeover talks with three potential buyers, reports the BBC.

The business, founded in 1905, provides insurance and driving lessons as well as operates 2,700 roadside assistance vehicles  and is in £2.65bn of debt.

It added that there was no certainty that the talks would result in offers, and that they are still considering staying with its current ownership and raising money itself.

News of the potential takeover has seen the AA's shares rise 13 per cent to 28p on Tuesday morning.

AA chairman John Leach said: "The AA is a high quality and robust business, with an iconic brand, a resilient business model and a highly committed and loyal workforce.

"However, in order for us to be able to achieve our full potential, the board believes that it must now prioritise reducing the group's indebtedness."