LONDON (ShareCast) - (Sharecast News) - Doorstep lender Provident Financial has once again urged its shareholders to reject a £1.3bn hostile bid from smaller rival Non-Standard Finance, as it announced the appointment of a new managing director of Vanquis Bank.
In a formal response to NSF's offer document on Monday, Provident reiterated its belief that the nil-premium offer is not in the best interests of its shareholders.

Chairman Patrick Snowball said: "The Provident board believes that NSF's hostile offer represents an irresponsible approach in the context of a regulated business which is emerging from a period of substantial instability. As such, the offer would have a negative and destabilising impact on Provident stakeholders, including its customers, for a considerable period of time.

"The Provident board believes that the offer would be value destructive and that the arguments put forward by NSF do not take into account the significant operational progress made by Provident's management team. Accordingly, the Provident board unanimously believes the offer is not in the best interests of Provident shareholders or customers and should be firmly rejected."

Under the terms of the offer announced last month, Provident shareholders would receive 8.88 new NSF shares for each of their shares, valuing each Provident share at 511p.

NSF said the deal would create a "well-balanced" group, with leading positions in some of the most attractive segments of the non-standard finance sector. It also said the transaction would "revitalise" Provident's prospects and unlock substantial value for Provident and NSF shareholders while benefiting customers and employees.

The transaction is backed by Woodford Investment Management, Invesco and Marathon, which together hold over 50% of Provident's shares.

Late on Friday, Amigo Holdings put paid to speculation that it might also put in a bid for Provident.

"The board of Amigo is committed to a mid-cost credit strategy and as such confirms that it is not intending to make an offer for Provident," it said in a statement after the close of markets.

Provident also said on Monday that it has appointed Neil Chandler as managing director of Vanquis Bank with effect from 15 April.

Until recently, Chandler was the chief executive officer of Shop Direct Financial Services and a member of the Shop Direct Group Executive. Before that he was CEO of Sainsbury's Bank, and became head of Personal Loans at HBOS, after joining as chief operating officer for Cards.

Provident said he has a strong financial services background, including, consumer finance, retail banking, loans and cards, combined with proven leadership and digital skill set.

At 1250 GMT, the shares were down 2.2% at 511.20p.

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