Phoenix Group takeover talks boost share price

Phoenix Group’s proposed takeover offer from private equity firm CVC Capital Partners was well received by the market yesterday, with the firm’s share price soaring.

Phoenix Group - the parent of Ignis Asset Management - saw its stock value rise 6.7%, or 32.9p, to 525p, giving it a market value of about £950m.

Resolution, meanwhile, which on Sunday announced talks about a proposed takeover of Phoenix had collapsed, saw its share price decline 7.5%, or 18.7p, to 230p.

In a statement to the market yesterday, Phoenix chairman Ron Sandler said: "The board is obliged to evaluate any proposals that are received, and will update shareholders as appropriate."

The Sunday Times had reported Resolution was close to clinching a £1.2bn all-share takeover of Phoenix, representing a 40% premium to its closing price on Friday.

However, in a statement yesterday Clive Cowdery's consolidation outfit said it had held talks with both Phoenix and its lending banks before deciding against going ahead with an offer.

Resolution said: "As part of its UK Life Project, Resolution continually investigates a variety of bolt-on opportunities. Any acquisition must have a strong financial case and enhance returns to shareholders. The hurdle to executing any particular transaction is therefore high."