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Daily Insurance Industry News
Monday 15th of October 2018
April 4, 2008

Takeover panel intervenes JC Flowers / Friends Provident takeover

by Gill Montia

Story link: Takeover panel intervenes JC Flowers / Friends Provident takeover

JC Flowers has been given until 30th April to make a final offer for Friends Provident.

Last week’s offer of 150p per share by the US private equity firm has been rejected. It valued the life assurer at £3.5 billion.

The saga has been running since last November, when Flowers made its initial approach. The Takeover Panel has now stepped in, despite earlier assurances from Friends’ chairman, Sir Adrian Montague, that he would not involve the Panel.

JC Flowers owns a 2.7% stake in Friends and in January, the firm indicated it was willing to pay 175p per share. This was below the 200p a share sought by Friends.

However, since January Friends’ share price has fallen from 164p to around 135p.

Friends has been seen as vulnerable to a takeover since its £8.7 billion merger with Resolution, the closed life consolidator, failed last year. The company has since undertaken a strategic review and reduced staff numbers.

JC Flowers is being advised by Citigroup, Morgan Stanley and Fox-Pitt Kelton and it is not yet clear whether it has secured enough funding to make an all cash deal bid.

 

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