Friends Provident has ended discussions with Resolution after rejecting yet another takeover proposal by the Clive Cowdery-led group.
The Friends board rejected an offer by Resolution, calling the terms and structure of the deal "remain wholly inadequate".Resolution proposed acquiring Friends for 0.82 of a Resolution share for each Friends share, plus a £500m cash element. The deal valued Friends at 74.6p a share at Friday's closing price.
Following rejection of the deal, the Friends Provident board says it "sees no basis for further engagement" with Resolution and has terminated discussions.
However, has been speculated that Mr Cowdery could now take his proposal straight to the shareholders, as it is estimated that Revolution investors hold up to 40% of the Friends Provident's equity. Resolution, an investment vehicle, is attempting to bring about consolidation within the insurance sector.
On 15 July 2009, Friends Provident Group plc became the new holding company for the Friends Provident group of companies.
