Friends announced plans to sell the assets and slash costs in January, following the October 2007 collapse of a merger with closed-funds specialist Resolution plc and a plunge in earnings. The Dorking, England, company had originally predicted it would be able to announce deals in August, but stock and credit-market chaos in the wake of the bankruptcy of Lehman Brothers Holdings Inc. recently fueled expectations that the sales would be scrapped.
"Today we are ending the uncertainty over Lombard and F&C," said Friends CEO Trevor Matthews in a statement. "We received a number of proposals for Lombard but it is clear to me that we should not only retain but also develop this unique business. Having carefully weighed the options for F&C, we intend to distribute our 52% holding to our shareholders by the middle of next year. All the businesses involved will benefit from this clarity." - Laura Board
