Phoenix Group takeover talks boost share price

Shares in 'zombie' fund specialist Phoenix Group rose yesterday on the back of a proposed takeover offer from private equity firm CVC Capital Partners.

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 (pictured) 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."