RSA's bid for part of Aviva's general insurance business could still happen but only if the offer is raised by around 10%, according to shareholder Ignis.
Aviva rejected a £5bn bid from RSA last week on the grounds the price was too low.
However, Ignis Asset Management, which holds around 0.5% of Aviva's share capital and roughly 1.5% of RSA's share capital, says the deal could still go ahead.
But investment manager at Ignis Martin Brown told Reuters RSA would have to up its bid proposal for some Aviva units by 10% to succeed.
"I think the deal definitely remains possible," Brown says. "There is no reason for the deal to be dead other than for RSA to be unwilling to pay more, but RSA would not have to raise its offer by much for Aviva to be obliged to consider it.
"A 10% increase might be enough to persuade Aviva to consider it, or to oblige Aviva to put it to its shareholders," he adds.
A question of selectivity
Watchdog interviewed 13,000 people
Debate over loyalty bonuses
Women more than half (54%) of workforce