CPP in takeover talks
CPP has revealed Affinion Group has made an approach to potentially buy the troubled Yorkshire credit card protection policy firm.
York-based CPP made an announcement to the Stock Market after noting recent movements in its share price.
CPP said: “The board of CPP confirms that it has received an initial, preliminary approach from Affinion Group, which may or may not lead to an offer being made for the group.
“It should be noted that the approach is at a very early stage and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming.
“The board will make further announcements as necessary in due course.”
Affinion, which provides a range of products and services to help companies attract new customers and improve customer engagement, has been given a deadline of 5pm on November 28 to make an offer.
CPP warned last week that its performance next year will be “materially below” its 2012 results after agreeing new restrictions on sales of its mobile phone insurance with the Financial Services Authority.
The move follows earlier restrictions on card and identity insurance resulting from an ongoing FSA investigation into the way CPP sold some of its products.
CPP’s shares were trading 31% up at 27.5p this morning.
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