LONDON, Oct 31 (Reuters) - British credit card insurer CPP
Group Plc said it had received an initial approach from
Affinion Group Inc which could lead to an offer for the firm,
sending its shares up 36 percent.
CPP's business has been hit an ongoing probe by Britain's
Financial Services Authority (FSA) into the way in which it sold
protection against identity theft. Last Friday it said the
investigation would hit its 2013 performance and would result in
customer compensation payouts.
CPP said the approach by Affinion, a U.S.
marketing firm, was at a very early stage. Shares in CPP, which
have dropped 84 percent in a year, had risen to 28.75 pence at
1104 GMT, valuing it at about 50 million pounds ($82 million).
($1 = 0.6218 British pounds)
(Reporting by Neil Maidment; Editing by Paul Sandle)