Meteor halts Keydata talks

Meteor Asset Management has walked away from negotiations to buy the structured products books of Keydata, Professional Adviser understands.

The plan provider had conducted due diligence on the business and agreed a purchase price with administrator PricewaterhouseCoopers when it pulled out earlier this month.

It is understood Meteor was frustrated by drawn-out negotiations and a last-minute attempt to increase the asking price. It was thought to be the only company still interested in acquiring the assets.

Keydata was placed into administration in June 2009 after the FSA declared it was insolvent because it would be unable to meet a multi-million pound tax bill caused by the selling of non-compliant ISA plans.

Meteor first expressed an interest in acquiring the Keydata business when it was forced into administration last year. Other groups to put their names forward included Jubilee Financial Services and NDF Administration, which has since collapsed.

Led by managing director Graham Devile, Meteor has been involved in multiple deals to buy the structured product businesses of now-defunct rivals.

At the end of 2009 it agreed to buy the books of both NDF Administration and Defined Returns Limited from administrator Grant Thornton.

Meanwhile, this year it has also set up a separate administration company as well as launching a Clean Energy fund.