Friends rejects Resolution Limited’s approach
Friends Provident is reported to have rejected a takeover approach from Resolution Limited, the acquisition vehicle set up last year by Clive Cowdery.
Resolution is said to be considering its options, with The Times reporting that it may appeal directly to shareholders.
Friends failed in its bid for Mr Cowdery’s original Resolution Plc, the closed life funds consolidator, in 2007.
The insurer was then forced into a far reaching review and has since come to be seen as a takeover target.
The group posted a net loss of £541 million for 2008 and in April reported a 40% fall in sales during the first quarter of 2009, to £147.9 million.
Sales at Friends’ international division fell 11% on the previous quarter to £37 million, as developing a presence in the Hong Kong market proved to be slow going.
By the end of March 2009, the firm’s capital cushion had shrunk to £0.8 billion, down from £0.85 billion at the end of December.
Category: Companies News, Insurance News
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