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JC Flowers Mulls Friends Provident Bid

Stephen Harris

11 April 2008

US private equity group JC Flowers could give up its proposed £3.5 billion cash offer for life assurer Friends Provident before an end of April deadline to make an offer or walk away, if Friends refuses to enter into talks. Friends Provident has said that the 150p per share proposal, including the receipt of the final dividend of 5.3p is too low and that there is no basis for discussion. A proposal of 160p per share is thought to be the level of offer that will bring Friends to the table, and some observers think it likely to be offered in the near future. JC Flowers has said that it has recently bought shares Friends in the markets at a maximum price of 165p. Analysts say that if a deal is struck, Friends’ F&C unit may not be kept but that an acquirer is unlikely to sell Lombard, its European wealth management business.