The protracted courtship of closed life fund consolidator Phoenix Group by private equity firm CVC Capital Partners has ended with both parties agreeing it is best to go their separate ways.
CVC and Phoenix have been discussing a possible bid by the former for the latter since late November 2011 after Phoenix rebuffed a bid approach from sector peer Resolution, but the parties have been unable to agree on a price that pleases both parties.
"Whilst 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," revealed Clive Bannister, Group Chief Executive Officer of Phoenix.
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That's it for bid discussions for Phoenix - until the next lot. The perennial bid target said it is not in discussions with any other party regarding a potential offer for the company and so should no longer be considered to be in an offer period, as defined by the London Stock Exchange's listing rules.
Phoenix, which was once known as Pearl, has been regarded as being "in play" ever since it geared up just ahead of the credit crunch to spend £5bn on a portfolio of so-called zombie (closed) life assurance funds from Clive Cowdery's Resolution company.
Bannister said the company would now return to its knitting. "Phoenix continues to focus fully on our business, customers, shareholders and staff to maximise the potential of our powerful consolidation platform," Bannister said.
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