JC Flowers withdraws bid for Friends Provident

Private equity firm JC Flowers has withdrawn its 150p-a-share cash offer for Friends Provident. The offer, which is subject to due diligence, valued Friends at £3.5bn. Proposed in March 2008, the offer was rejected by Friends’ board, which refused to enter into discussions saying that it significantly undervalued the business and its prospects. Friends is planning to sell its 52% stake in F&C, its investment arm, and Lombard, its wealth management group, which could realise over £1bn for the group as part of its strategic restructure.