Friends Provident rejects offer

Friends Provident recently announced job cuts

UK insurance group Friends Provident has rejected a £3.5bn takeover offer from US investment firm JC Flowers.

Friends said the offer significantly undervalued the company and did not “represent a basis for discussion”.

The offer values Friends shares at about 150 pence each, less than the 175p that JC Flowers was said to be considering proposing in January.

Since then, Friends' share price has fallen sharply and many deals have been derailed by financial markets woes.

Job cuts

Last month Friends Provident reported a £46m annual loss, caused in the main part by a one-off £440m accounting charge.

At the start of the year, it unveiled plans to reduce its workforce by 600 jobs, and said it was continuing with a strategic review.

Reports at the weekend said Friends 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.

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