Friends Provident has confirmed it rejected a fresh 150p per share proposal from private equity firm JC Flowers last Thursday.
In a statement to the stock exchange this morning, Friends Provident says the proposal “significantly undervalues” the insurer and its prospects and did not warrant further discussions.
Friends Provident says the proposed offer would have been reduced in the event it paid shareholders the 5.3p per share 2007 final dividend.
“Friends Provident remains focused on the implementation of its strategic review announced on 31 January 2008 and will update shareholders on progress at the 2008 interim results,” the statement reads.
Earlier this month Friends Provident told IFAonline it was not seeking any potential suitors, as the firm currently has a “strong capital base” to grow the business.
Friends Provident's share price has surged this morning, up 3.75% to 124.60.
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