The firm, which has a capital adequacy shortfall of £1.5m, had reportedly been in talks with one potential buyer, but these have fallen through. Both Millfield and AEGON have refused to be drawn on the speculation that AEGON were the interested party.
Adrian Cammidge, head of business media at AEGON, said: “We cannot comment on any market speculation involving AEGON.”
Millfield has appointed Alan Easter as chief executive to replace Paul Tebbutt, who stepped down after six years at the company, and it is now his responsibility to turn the organisation around. The IFA firm has brought in turnaround consultants to reshape the business model and said while every option was being considered to restructure its finances, it was not trading insolvently.
While no one associated with Millfield could comment because of stock market rules, a statement on the company’s website said: “The Board is continuing its discussions with various parties and is currently preparing an enhanced business strategy with a view to raising new capital from shareholders. The company continues to communicate with the Financial Services Authority and is in discussion with its commercial loan providers with regard to the recapitalisation of the company.”
Speculation regarding Millfield’s troubles had been circulating within the industry ever since Tebbutt was fined £35,000 by the FSA in April for providing misleading information regarding the merger of Millfield and Inter-Alliance in 2004.
