(Reuters) - Insurance company Aviva has contacted investors in bid target Direct Line, a move that could pave the way for a hostile takeover of the smaller rival, the Financial Times reported on Thursday.

Aviva said late on Wednesday it made a 250-pence cash and share offer for Direct Line on Nov. 19.

The offer was at a nearly 60% premium to Direct Line's closing price on Nov.18 and was rejected. Direct Line said the proposal was "highly opportunistic".

On Thursday, shares in Direct Line jumped 41.4% to 224.4 pence at 1801 GMT, its highest level since March 13 this year.

Meanwhile, Aviva's shares dropped about 2% to 479.5 pence, placing it among the top losers on the FTSE 100 index.

If the deal had gone through, Direct Line shareholders would have received 112.5 pence in cash and 0.282 new Aviva shares for every Direct Line share held.

In March, Direct Line rejected a takeover bid from Belgian rival Ageas, which was 4.6% lower than Aviva's offer on Wednesday.

(Reporting by DhanushVignesh Babu in Bengaluru; editing by David Evans)