Share bounce for CPP over Affinion approach
AFFINION Group today said talks with CPP over a possible takeover were at “a very preliminary stage” and stressed there was no agreement in place over a deal.
Yesterday’s announcement of the approach saw the Yorkshire credit card protection policy firm’s share price markedly increase, closing at 29.5p last night.
In a statement this morning, United States-headquartered Affinion said: “Affinion Group notes the announcement issued by CPP Group on 31 October 2012, and confirms that its considerations are at a very preliminary stage and there is no certainty that any offer either will be made, or as to the terms on which any offer may be made.
“Affinion also confirms that there are no agreements between Affinion and CPP under which the Company is required to acquire CPP.”
York-based CPP has been hit by an ongoing Financial Services Authority investigation into the way it sold some of its products.
The approach by direct marketing and credit card insurer group Affinion is a positive for CPP after it recently warned its 2013 performance would be down on this year in the wake of the investigation, which has seen restrictions put on sales of its mobile phone insurance.
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 for CPP.
