James Moore: Friends just says 'no'

Outlook: Cowdery's Resolution made institutional investors a fortune and they hope he can repeat the trick.

Clive Cowdery was at pains to stress that "Doris in Dorking" is very much in his thoughts as he ponders his next move after his initial takeover approach to Friends Provident was rejected.

Institutions such as Aviva and Prudential have backed Cowdery's Resolution vehicle because he made them a fortune with its first incarnation and they hope he can repeat the trick. These institutions also have considerable shareholdings in Friends Provident and might, therefore, be prepared to give a deal the green light.

But for the retail shareholder – and there are a quarter of a million of them – there is an awful lot to be taken on trust. What Doris and her friends have is shares in a medium-sized life insurer that is recovering under a new management team and at least pays due regard to paying them a dividend every half-year.

What she will get from Mr Cowdery is part of a private equity-style deal-maker that might think about paying her something at some point but certainly won't forget to pay the boss and his mates.

The Friends board has a duty to act for all shareholders and has paid due regard to Doris in rejecting the first approach. It would seem that Mr Cowdery has a lot of work to do if it is to back a second.