CPP founder makes a late takeover bid

CPP Group, the credit card insurer that is racing to refinance, said yesterday its founder and majority shareholder has proposed a 1p per share takeover.

The firm, whose debt facilities expire on 31 March, said Hamish Ogston has made a preliminary approach that values the group at £1.7m.

CPP has been in talks with its lenders for months, but has so far failed to reach a refinancing deal.

The company has lost major contracts with Santander and RBS since being hit with a Financial Services Authority fine for mis-selling insurance in November. Its shares have slumped from its May 2010 float price of 265p.

CPP warned the market yesterday that talks with Ogston are at an early stage and might not lead to an offer.

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