Friends Provident are now among the losers on the FTSE 100 after setting out terms for merger talks with entrepreneur Clive Cowdery's Resolution.
Four days after rejecting a £2bn all-share offer from the company, Friends invited Resolution back to the negotiating table to find a deal that is "fair to both sets of shareholders". It did not take Resolution long to put out a statement saying it would be happy to enter into talks.
But Friends made clear that it would only be interested in a tie-up with Resolution if it remained in the driving seat. The life and pensions group said it saw an opportunity for the two firms to "pool their talents and capabilities". It demanded that it remain the holding company of the enlarged firm.
Friends lost 1p to 71p this afternoon, a fall of 1.4%. Before the bid approach, the shares were around 60p but have risen this week on hopes of a knockout bid from Resolution. Resolution shares rose 2p to 90.5p.
