Friends shares climb on report of Resolution interest
Shares in insurer Friends Provident rose on Thursday after the Financial Times reported that entrepreneur Clive Cowdery was considering a break-up bid for the group.
Citing people close to Cowdery, the FT said he was considering options, ranging from taking a stake in Friends with a view to restructuring it, to a full takeover. Cowdery has not yet prepared a formal approach and has not held talks with Friends, the paper added.
A spokesman for Cowdery said: "There is no wish list. It would be wrong to think that any one company is being singled out."
Friends Provident shares were up 2.2 percent at 101.3 pence by 9:00 a.m.
Cowdery, founder of closed-life fund consolidator Resolution, last year agreed to merge the company with Friends, but sold it instead to rival Pearl Group after a long drawn-out bid battle.
Cowdery is now leading a new venture, also called Resolution, which aims to buy and consolidate UK financial services companies, including insurers and asset managers.
He is due to announce details of the new company's strategy and funding later this month.
Friends Provident is attempting to sell its Lombard wealth management arm and its majority stake in British fund manager F&C as part of a strategic overhaul launched after the failed Resolution tie-up, but has so far failed to find buyers.
The company's shares have fallen nearly 40 percent since the start of the year on concerns over the stalled disposal programme, and amid worries insurance sales would be affected as Britain's economy slows.
Friends Provident declined to comment on the FT report.
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