Shares in insurer FBD jumped by over 10% earlier today after it emerged that a Norwegian insurance group had bought a 6.3% stake in the business.
The development involving Oslo based Protector Forsikring was disclosed in a filing to the stock exchange.
However, the stake is "not strategic" and the firm is not preparing to bid for FBD, a spokesman for the Scandinavian insurer told RTÉ News.
Instead, it purchased the shares as part of its portfolio of investments, representing around 1% of its overall €1.5bn in assets.
The spokesman said Protector Forsikring had spoken to FBD management, likes the way the Irish company has done business in the past and its current market position.
He said the Norwegian firm is "in there for a long amount of time."
FBD declined to comment on the issue.
Protector Forsikring provides general insurance and reinsurance to commercial and public sector clients.
It distributes its products through a range of intermediaries such as brokers and real estate agents.
It has operations in Norway, Sweden, Denmark, Finland and the UK.
Protector Forsikring purchased the shares at around €7.12, and this afternoon they were trading at €7.70, having reached €7.88 at one point around midday.
Prior to the announcement, FBD shares had fallen 9% this year.