JC Flowers in Friends Provident bid

by Gill Montia

Story link: JC Flowers in Friends Provident bid

JC Flowers & Co, the US private equity firm, is considering a takeover of Friends Provident, having acquired just under 3% of the company.

Friends Provident, which is the UK’s fourth largest life insurer, is currently undertaking a strategic review instigated by the collapsed of its plans to merge with Resolution Life.

The review will be completed later this month and could lead to the sale of Friends’ 53% stake in F&C Asset Management, which manages most of its insurance funds. The review could also recommend changes that will impact on the company’s UK life business.

Goldman Sachs is advising Friends Provident during the review period and is reported to have already spoken to potential buyers of the group’s assets.

Friends Provident is also seeking a new chief executive, Philip Moore having been ousted when the £8 billion merger negotiations with closed life funds consolidator, Resolution, collapsed.

Meanwhile, speculation has emerged that Standard Life will make a bid for Friends.

Both companies had been vying for a merger with Resolution in what became an open bidding war in which Standard Life heavily criticised Friends’ business model.