German insurer Allianz weighs $6.77 billion takeover of AA roadside rescue giant, Sky News reports

Aug 29 (Reuters) - Germany-based financial services company Allianz is considering a £5 billion ($6.77 billion) takeover swoop for AA, the breakdown recovery group, Sky News reported on Saturday.

AA, founded by a group of motoring enthusiasts in 1905 and known in Britain for its yellow recovery vehicles, was taken public by its previous private equity owners in 2014 at 250 pence a share.

Allianz is one of a small number of parties which have been holding talks with advisers to the AA about a deal, Sky News said, adding that private equity firm EQT was another bidder.

The AA's private equity owners have been pursuing a so-called dual-track process for most of this year, with the alternative to a sale being a public listing on the London Stock Exchange, Sky News said.

Both companies declined to comment.

The Financial Times reported last year that the British roadside recovery company was eyeing a £5 billion sale and was seeking buyers.

($1 = 0.7390 pounds)

(Reporting by Preetika Parashuraman in Bengaluru; Editing by Aidan Lewis)