The Sunday Times has reported that JC Flowers is working on a revised takeover bid for Friends Provident.

Last week, the Takeover Panel intervened after the US private equity group’s informal offer of £3.5 billion was rejected by Friends Provident.

JC Flowers has until the end of the Month to table a forma bid and has been in conversation with a number of groups who may be interested in buying parts of the business.

Following last year’s failure of its merger negotiations with Resolution, Friends has been undertaking a strategic review that has led to the auction of its Lombard division.

Friends Provident has been up for sale since January.