Phoenix terminates CVC takeover talks
Phoenix has terminated takeover talks with CVC Capital Partners.
Life insurance firm Phoenix may no longer be using negotiation consultants, as it has confirmed it has ended takeover talks with CVC Capital Partners.
Phoenix chief executive Clive Banister explained the terms CVC had proposed did not reflect his organisation's view of the full value of the company or its long-term and stable cash flows.
This resulted in the two firms coming to a mutual decision to conclude the discussions, he added.
Phoenix has more than six million customers and holds over £67.5 billion of assets.
It was formerly known as Pearl and has significant amounts of debt, which it took on in 2007 in order to finance a £5 billion acquisition of a closed life fund portfolio put together by Resolution founder Clive Cowdery.
"The challenge with Phoenix is their capital structure and all that debt. It always looked as if a deal would be hard to pull off," Investec analyst Kevin Ryan told Reuters.
Posted by Ron Maverick
Soruce: Press reports, February 10th