Friends Provident rejects takeover offer

31st March 2008

UK insurance group Friends Provident has rejected a £3.5bn takeover offer from US investment firm JC Flowers.

Friends Provident said the offer significantly undervalued the company and did not “represent a basis for discussion”.

The offer values Friends shares at about 150 pence each, this is considerably less than the 175p that JC Flowers was said to be considering proposing in January.

Since then, Friends' share price has fallen sharply and many deals have been derailed by troubled  financial markets.

At the start of the year, it unveiled plans to reduce its workforce by 600 jobs, and said it was continuing with a strategic review.

Reports at the weekend said Friends wants the UKs Takeover Panel to issue JC Flowers with a "put up and shut up" deadline by which it must make a formal bid or else walk away for six months.

Friends has its headquarters in London and employs 4,000 staff across the UK

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