Friends Financial plans £1bn capital return in 2008/9

In a statement to the stock exchange this morning, the companies say if the prospective Friends Financial merger is approved, they expect 2008 capital return to be generated from existing internal cash resources and “where appropriate new debt”. In 2009, the planned return to Friends Financial shareholders will come from the disposal of approximately £1bn of Resolution’s existing lower return assets. Resolution did not disclose what assets it plans to discard. Resolution chief and Friends Financial chairman designate Clive Cowdery says with less than two weeks until the merger vote, the...