Resolution to consult shareholders on Friends deal

27 July 2009 9:06 am

Resolution adds that while there is no guarantee that it will table a further offer for the group, it will make any further announcements "if and when appropriate".

Friends Provident announced this morning that it had rejected the revised Resolution acquisition proposal and terminated discussions with the consolidation firm.

Resolution’s latest offer, made on July 26, involved Resolution acquiring Friends Provident for 0.82 of a Resolution share for each Friends Provident share, valuing Friends Provident at 74.6p a share. The proposal included a cash element of £500m.

Friends Provident says the proposal remains wholly inadequate.

Friends says: “The Board of Friends Provident sees no basis for further engagement with Resolution and has terminated discussions.”

On July 13 Friends Provident rejected an initial takeover proposal from Resolution, saying the offer was not in the best interest of its shareholders.

Resolution offered 0.8 new Resolution shares for every Friends Provident share. This would have led to Friends Provident shareholders holding approximately 74 per cent of Resolution.

Friends made a counter offer on July 17 proposing the combination of the firms which would see Friends Prov become the holding company of the new entity.

Friends proposed Resolution chairman Mike Biggs becomes chairman of the enlarged group and Clive Cowdery becomes executive deputy chairman responsible for consolidation strategy. The proposal would have seen Trevor Matthews continuing in his current role as group chief executive.

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