CPP founder pulls out of takeover talks

Founder of CPP Hamish Ogston has pulled out of talks regarding a takeover of the credit card protection company. He has also resigned as director of the company.

In a statement, the CPP said it had also been seeking alternative financing solutions, including with "certain business partners".

Mr Ogston has now informed the Board of his decision to cease all work in relation to his possible offer for CPP and his potential involvement in a refinancing of the Group, and that he will not be making an offer for CPP and is bound by the restrictions under Rule 2.8 of the City Code. Mr Ogston has also given notice of his resignation as a director of CPP with immediate effect.

The group remains engaged in constructive discussions with its existing lenders and certain business partners with a view to putting in place a long-term funding plan for CPP. The group has in place existing banking facilities which expire on September 30, 2013 and the board will make further announcements when appropriate.

CPP has been in financial troubles since its £10.5m fine last year for mis-selling insurance products. The estimated compensation costs on top of the fine is £51.7m. Its share price has fallen from above £3 per share two years ago to below three pence.