Phoenix shares fall as CVC takeover talks terminated

Ignis Asset Management's parent company Phoenix has ended takeover discussions with private equity company CVC Capital Partners after a disagreement on price.

CVC emerged as a possible buyer of Phoenix in November after similar talks with rival insurer Resolution failed.

However, Clive Bannister, chief executive of Phoenix, released a statement yesterday saying the firm was not happy with the price suggested by CVC, according to the FT.

The statement said, "While the board is obliged to consider credible approaches, the terms proposed by CVC did not reflect our view of the full value of Phoenix and its stable, long-term cash flows. As a result, we have mutually decided to terminate these discussions.

"The terms proposed by CVC did not reflect our view of the full value of Phoenix," he added.

Shares in Phoenix fell 8% to 525p in early morning trading in London before moving back up to 560p by 10.30am, reflecting a smaller fall of 1.7%.