JC Flowers considers offer for insurer
US private equity firm JC Flowers said yesterday it is considering making an offer for Britain's Friends Provident, boosting the shares of the stricken insurer.
JC Flowers, which also said an entity advised by it had acquired a stake of around 2.7 percent in Friends, stated that it intends to approach Friends' board "with a view to developing a proposal that will deliver value for Friends Provident's shareholders".
Friends' shares jumped on the regulatory statement to show a gain of 7.5 percent at 163.9 pence by 1056 GMT, making it the biggest blue-chip gainer across Europe.
The Times reported that JC Flowers was prepared to put together a formal offer at 175 pence per share.
But Friends Provident was likely to be looking for offers above 200 pence per share, the newspaper said, quoting sources familiar with the matter.
Friends, Britain's smallest blue-chip life insurer, has been facing tough questions about its future since it abandoned key growth targets last year and a planned 8.7 billion pound merger with rival firm Resolution fell through.
Agencies
(China Daily 01/22/2008 page17)
