Friends suitor makes new bid push

Friends Provident has so far refused to meet with bidder JC Flowers

US private equity firm JC flowers has unveiled details of how its £3.5bn proposal to buy UK insurer Friends Provident will be funded.

In the latest attempt to get Friends to open its books for due diligence, the New York-based firm said the purchase would be funded mainly from equity.

Royal Bank of Scotland, Morgan Stanley and Citigroup had agreed to provide the rest based "on certain conditions".

Last week, JC Flowers was given until April 30 to make a firm offer.

Under the Takeover Panel's ruling, if JC Flowers does not make an offer by then, it must walk away and cannot make another bid for the UK life insurance and pensions firm for at least six months.

The US group, which specialises in buying troubled firms in the financial sector, said it could not make an offer without "direct engagement" with Friends' board and due diligence access.

No improved bid

Friends has so far refused to enter negotiations with JC Flowers after snubbing its 150 pence a share proposal at the end of March.

But it stood by its offer, dashing rumours that it was working on an improved bid.

It said the "proposal is attractive, offers compelling and certain cash value for shareholders and represents a sound basis for entering into discussions with Friends Provident".

Friends has been in the throes of a strategic review after its £8.7bn merger with rival Resolution collapsed last year, which saw its share price tumble.

It has so far announced 600 job cuts and is trying to sell its majority stake in investment arm F&C Asset Management.