US firm Affinion drops out of takeover talks for CPP

US firm Affinion Group last night pulled out of takeover talks with credit card insurer CPP.

Affinion, which had revealed it was in preliminary takeover talks at the end of last month, said it had no intention of making an offer.

CPP, said it would continue to actively pursue a range of financing options.

“We are in discussions with our lending banks about the group’s debt facilities which mature in March 2013 as well as considering a number of alternative financing and strategic options,” it said in a statement.

York-based CPP, which derives 68 per cent of its revenues from the UK, was hit earlier this month with a record £10.5m fine from the FSA over misselling after a long-running investigation into historic practices at the firm.

At the time, CPP chief executive Paul Stobart said it would now seek to rebuild both its business and market reputation.

Shares in CPP, which have collapsed since their 235p float in 2010, closed down 5p yesterday at 20p.