StockMarketWire.com - Non-Standard Financial dropped its hostile takeover bid for rival sub-prime lender Provident Financial after it met regulatory resistance.
The Prudential Regulation Authority had assessed that the merged group would not have enough capitalisation at current levels of shareholder acceptance.
Non-Standared Financial said its offer would consequently lapse at midnight on Wednesday.
'I am very disappointed that despite our best efforts customers, employees and shareholders will not now benefit from our transformation plan to build a brighter future by combining Provident with NSF,' chief executive John van Kuffeler said.
'NSF will continue to focus on delivering value to its customers, employees and shareholders by providing a helping hand to the 10-12 million UK consumers that are either unable or unwilling to access mainstream credit.'
Provident said the outcome was in the best interests of its shareholders and that it 'greatly regrets the unnecessary distraction, cost and impact of the uncertainty on Provident's customers and staff caused by NSF pursuing its extended hostile offer'.
Story provided by StockMarketWire.com
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