Buy-out firm Resolution said the board of British life insurer Friends Provident Group had rebuffed a proposed merger.
But Resolution, founded by entrepreneur Clive Cowdery, said today it had received “constructive feedback” from Friends and the insurer's advisers and was considering its next move.
Resolution said it had made no decision on whether to make an offer for Friends Provident. It said any offer was likely to be primarily a share exchange but supplemented by a cash element from Resolution's existing cash reserves.
Credit Suisse is advising Resolution.
Yesterday two sources familiar with the situation said Resolution had written to Friends Chairman Sir Adrian Montague but the proposal did not offer a significant premium to shareholders and was likely to be rejected.
Reuters