Life assurer Friends Provident, that is currently a takeover target, has entered a new phase of the long-running saga of its courtship by JC Flowers.

An offer of 150p a share (valuing the company at £3.5 billion) has been rejected by Friends Provident, with the backing of Scottish Widows, their biggest shareholder.

However, according to a Sunday Times report, Centaurus Capital which holds a 3% stake in Friends Provident, is pushing for negotiations to be re-opened, as they believe the rejected offer is close to an acceptable figure.

Centaurus’ action follows speculation that JC Flowers is willing to walk away from the proposed deal before the Takeover Panel deadline expires.