US private equity group JC Flowers is likely to walk away from Friends Provident following limited contact with the insurer's management.
Sources close to the proposed deal told Reuters "there is no light at the end of the tunnel”, with Flowers likely to end discussions before the 30 April Takeover Panel declaration of intent deadline. Last week Friends Provident confirmed it had rejected a 150p per share proposal from Flowers, which values the insurer at £3.5bn. Friends Provident says the proposal “significantly undervalues” the firm and its prospects and did not warrant further discussions. The source added Friends chairman Adrian Montague continues to refuse contact with Flowers, which owns a 2.7% stake in the insure...
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