BUZZ-Innovation Group: Hits 10-yr high after announcing Carlyle merger talks
** Insurance software company's shares up 7 pct to levels not seen since May 2005 as it announces it is in merger talks with private equity firm Carlyle Group
** Co says in advanced talks with Carlyle for a deal at 40p per share in cash
** Shares (Berlin: DI6.BE - news) jumped 9.8 pct to 39.25p after announcement, before paring gains slightly to trade at 38p
** Stock poised for best day since Aug. 2011; 1.2x its avg daily volume gone through
** Shares currently third-largest gainers on the FTSE small-cap index (venkateshasoumithri.mamidipudi.thomsonreuters.com@reuters.net)