Bid deadline given for Friends

Friends Provident's future as a standalone firm is uncertain

US private equity firm JC flowers has been given a deadline to make a firm offer for UK insurance firm Friends Provident or leave it alone.

JC Flowers must set out its intentions either way by 30 April under a Takeover Panel ruling secured by Friends.

Earlier in the week, Friends rebuffed its 150 pence a share offer - a deal worth £3.5bn.

The UK insurer has been considered a takeover target since its £8.7bn merger with Resolution fell through.

If JC Flowers does not come forward with a firm proposal to buy Friends by the end of April, it will then have to wait six months before it can make another approach.

Friends made a loss in 2007, partially caused by a one-off £440m accounting charge, but it is in desperate need of cash to support its business.

After being jilted by Resolution, the company said it would sell its 52% stake in F&C Asset Management to raise capital. It is also planning to cut 600 jobs from its workforce.