M&G Investments to reject NSF's hostile bid for Provident Financial

M&G Investments will reject Non-Standard Finance's £1.3bn hostile takeover bid for larger rival Provident Financial.

In a letter published by Provident on Tuesday, M&G - which has a 1.7% stake in the doorstep lender - joined Schroders and Coltrane in saying that it will vote against the deal. Provident said holders of around 20.2% have now said they will not back the deal.

In the letter, M&G's head of corporate finance and stewardship, Rupert Krefting, said: "M&G is supportive of PFG's current strategy and does not believe that a combination with NSF and subsequent break-up of the enlarged group will create value for PFG shareholders, and therefore is not in the best interest of our investors."

Last week, NSF said it had the support of investors holding 53.5% of Provident's shares.

At 0930 BST, Provident shares were flat at 452.90p and NSF shares were up 0.7% at 48.54p.