JC Flowers seeks to fund Friends Provident bid

by Gill Montia

Story link: JC Flowers seeks to fund Friends Provident bid

US private equity firm, JC Flowers, is reported to be negotiating funds from a consortium of banks to finance a bid for Friends Provident, the life insurer.

RBS, HBOS, HSBC and Morgan Stanley have apparently been approached by JC Flowers, which is looking for £1.5 billion to help fund the acquisition.

Around £1.2 billion is expected to come from the four banks and a further £300 million from smaller institutions.

Friends Provident has been considered a takeover target since last year, when its proposed merger with Resolution, the closed life consolidator, foundered.

Pearl emerged as victor in the bidding war for Resolution, leaving Friends facing difficulties in funding business growth and forced to undertake a strategic review.

JC Flowers is particularly interested in buying troubled financial-services companies but may not bid for all of Friends.

It is understood that the firm is not interested in acquiring F&C Asset Management, which specialises in institutional and retail investors and is valued at around £880 million.