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US firm decides not to buy York employer CPP
AN AMERICAN company which had been in takeover talks with York employer CPP, has said it does not intend to make an offer for the business.
Affinion Group, which markets membership, insurance, and loyalty programs with offices in 12 countries, including Slough in the UK, confirmed on October 31 that it was in preliminary talks about a possible takeover.
CPP said in a statement to the stock exchange acknowledging the decision: "As previously announced, the board continues to assess and 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."
The company's share price closed at 20p, down 5p from 25p at close on Tuesday, despite having risen to a high of 27.5p during the day.
Concerns had been expressed by local politicians of the effects on the 900 people CPP employs in the UK, if it were to be bought by Affinion, which is headquartered in Stamford, Connecticut and has provided identity theft, credit card and fraud protection and security services since 1969.
CPP, which employs about 900 people in the UK, mainly in York, announced earlier this month that it had been hit with a £10.5 million fine by the Financial Services Authority following an investigation into misselling, on top of £14.5 million it expects to have to pay in redress to affected customers and associated costs, expected to rise to £33.4 million. It said that it would have to "reduce its cost base" but that now the investigation was over they could start to rebuild the company.