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Friends Provident (FP.) 114.3p

UK life insurer Friends Provident reported a sharp fall in profit for 2007 as it said it is making good progress on its new strategy. (Read the full story: www.sharesmagazine.com/node/3573)

Shares says: The strategy is all over the place and selling the two asset-management arms looks like a short-term source of relief. SELL

The Independent says: After expanding too quickly in low-margin, long-term corporate pensions and suffering a drop in more profitable protection policies, the company said it would scrap plans to expand in wealth management and concentrate on pensions and protection.

Telegraph says: Friends Provident has urged JC Flowers to clarify its intention toward the UK insurer after two months of speculation about whether the US private equity group would make a bid.

The City says: It is highly unlikely that Flowers would pay the previously indicated 175p, let alone the 200p-220p that many investors considered reasonable.