Friends Provident 'receives bid'

Friends Provident recently announced job cuts

Speculation is mounting that insurance group Friends Provident has received an indicative takeover offer from US private equity group JC Flowers.

According to media reports, JC Flowers has informally offered around 150 pence per share, worth £3.5bn.

This is less than the 175p per share that JC Flowers was reported to be considering offering back in January.

Since that time Friends' share price has fallen sharply. Neither firm has been available for comment.

Job cuts

Reports say the life insurer wants the UK's Takeover Panel to issue JC Flowers with a "put up and shut up" deadline by which it must make a formal bid or else walk away for six months.

Last month Friends Provident reported a £46m annual loss, although that was mostly due to a one-off £440m accounting charge.

In January the group announced plans to reduce its workforce by 600 jobs and said it was continuing with a strategic review of the company.

Friends Provident has its headquarters in London and employs 4,000 staff across the UK.