Friends Provident Fund a U.K Based life insurer said that it entered into discussions after receiving a offer at 1.86 billion pounds. Resolution the buyout company founded by insurance entrepreneur offered a share of around 0.9 percent for each friend provident share. This offer includes a partial cash alternative for as much as 500 million pounds which is 12 percent more than Friends Provident Fund.
The Resolution Company is making an attempt for the third time to buy out the insurer whose earlier offers have been turned down. Friends Provident Fund jumped 7 percent to 75 pence in London trading leading to its valuation at 1.76 billion pounds. But the share of this company declined to 3.5 percent as of this year.
Friends Provident is U.K’s biggest life insurer which if Resolution buys would in turn lead to a big enlarged company by 2012.
Other companies who are into this race are of the opinion that they see no immediate benefits which are arising out of consolidation into the resolution industry.
Friends Provident said in a consolidation that the revised proposal was sufficient enough to enter into discussion with Resolution on recommending a proposal to itself. A earlier resolution was being passed which offered 0.82 shares for Friends Provident share was being rejected. The insurer also rejected an approach which offered 0.8 Resolution shares for every share of the company.
Friends Provident is U.K’s biggest life insurer which if Resolution buys would in turn lead to a big enlarged company by 2012.
Other companies who are into this race are of the opinion that they see no immediate benefits which are arising out of consolidation into the resolution industry.
Friends Provident said in a consolidation that the revised proposal was sufficient enough to enter into discussion with Resolution on recommending a proposal to itself. A earlier resolution was being passed which offered 0.82 shares for Friends Provident share was being rejected. The insurer also rejected an approach which offered 0.8 Resolution shares for every share of the company.
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