Prestbury confirms PTFS talks

Prestbury has officially confirmed it is in talks to transfer around 80 of its appointed representatives to Personal Touch Financial Services two days after takeover negotiations were revealed.

The confirmation was made in an announcement on the London Stock Exchange this morning.

But the company statement goes on to add that the current negotiations “are not legally binding and the terms are subject to contract. There can be no certainty that the transfer will take place.”

Dev Malle, group sales director at Personal Touch, says: “We are in the midst of ongoing discussions with Prestbury, and are currently working on the detail of the agreement.”

Trading in Prestbury shares will remain suspended until the company announces its interim half-year results to June 30 2008.

Stephen Young, sales and marketing director at rival network Sesame, says network closures and consolidations are likely in the current climate.

He says: “Following the recent demise of Trustguard it is clear that some mortgage networks are in real peril, and sadly we expect to see further failures.

“This is appalling for those hard working advisers who are directly affected, as they will see their commission pipeline frozen and will be unable to trade. Sesame is gearing up with a package of support that will help to ease the burden for advisers who find themselves in this predicament.”