LONDON (AP) — British insurance and pensions provider Friends Provident PLC said yesterday that it had rejected a £1.7 billion ($2.7 billion) takeover offer from buyout company Resolution Ltd.

Friends Provident said the proposed offer of 0.8 new Resolution shares for every Friends Provident share was "wholly inadequate".

It also said Resolution's governance structure would offer "less transparency" than its shareholders were used to "and a structure significantly different from recognised public company best practice".

Resolution said it was considering making another offer.

"Although Resolution's proposal was not considered to be acceptable by the board of Friends Provident, Resolution received constructive feedback from Friends Provident and its advisers and is considering its response," the firm said in a statement.

Friends Provident announced in April that its sales were down 51 percent in the first quarter of 2009, worse than expected in tough market conditions.

Friends Provident shares were up more than six percent at 64 pence on the London Stock Exchange.