Resolution tempts Friends Prov with fresh offer

Clive Cowdery's consolidation vehicle Resolution returned to the negotiating table with a sweetened offer for Friends Provident this morning.

The company said in a stock exchange statement it would be prepared to offer a cash component for the first 2,500 Friends Provident shares and issue Resolution shares in exchange for the remaining shares in the insurer. It says the cash part of the possible offer would allow the majority of Friends' small shareholders to exit in cash in full. It would also pay an annual dividend to the insurer's shareholders in respect of 2009. On Friday, Friends Provident sent a letter to the chairman of Resolution setting out its proposed structure for a possible combination of the two groups. Th...