JC Flowers' £3.5 billion takeover tilt at Friends Provident looked to be on the brink of collapse last night after the American buyout firm refused to sweeten the terms of its offer and said that it would walk away unless it was given access to top management by Friday.

In what appeared to be the final death rattle of a deal that has been in the works for almost a year, Flowers said that it had no intention of raising its 150p-a-share all-cash indicative offer.

Flowers, which holds a 2.7 per cent stake in the 176-year-old Friends, has already cut its proposal once, from the 175p a share that was informally submitted in January.

However, for the third time since last November, when the buyout firm first broke cover about its interest in a Friends deal, Flowers demanded talks with the board, led by Sir Adrian Montague, the chairman.

“In the event that the board of Friends Provident does not enter into discussions with JC Flowers prior to the close of business on Friday ... it is JC Flowers' intention to formally withdraw its proposal,” the buyout firm said in a formal statement to the stock market yesterday afternoon.

Friends shares slid more than 10 per cent, losing 14.1p to 116.5p as investors began to predict that the deal was over.

The shares have been consistently below 150p in recent weeks.

Friends Provident said that its position had not changed since the end of March, when it said that 150p a share was not sufficient to merit talks. Sources on both sides said that the chances of talks being held were slim.

Sources close to Flowers speculated that there was still a chance that Friends shareholders could pressure the insurer to come to the negotiating table.

“The question is: do you want 150p in cash now, or will you take a bet on a recovery story that might happen in a couple of months or might not happen at all?” one source said.

Analysts said it was a “no-brainer” that the deal was off.

Scottish Widows Investment Partnership, Friends' biggest shareholder with about 11 per cent, has already supported the rejection of Flowers' advances.

Over the weekend, Centaurus Capital, a substantial Friends shareholder, called for a bigger offer and for the insurer to hold talks with Flowers.

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