Offer talks terminated at CPP

HAMISH Ogston, the founder and majority shareholder of troubled card and phone protection provider CPP, has pulled out of talks to buy the company.

The board at the York-headquartered firm has been in discussions with CPP’s existing lenders, Ogston and other parties concerning the financing requirements of the group.

The announcement said: “Mr Ogston has now informed the board of his decision to cease all work in relation to his possible offer for CPP and his potential involvement in a refinancing of the group, and that he will not be making an offer for CPP.

“Mr Ogston has also given notice of his resignation as a director of CPP with immediate effect.”

The group said it remains engaged in “constructive discussions” with its existing lenders and certain business partners with a view to putting in place a long-term funding plan for CPP.

“The group has in place existing banking facilities which expire on September 30 and the board will make further announcements when appropriate,” said CPP.

Ogston recently said he wanted to take the troubled credit card insurer private under a proposal that would value the company at £1.7m.

Ogston launched CPP in 1980 and the company is now listed on the Stock Market and employs almost 2,000 staff.

However, the company was hit by a £10.5m fine by the Financial Services Authority last year for mis-selling policies.