New Provvy warning

DOORSTEP lender Provident Financial says a hostile bid to buy it could be blocked by the Competition and Markets Authority (CMA) watchdog.

It said shareholders risk disaster if they approve a takeover by rival NonStandard Finance.

NSF insists it can squeeze more profit out of its rival if given control, but the Provvy says the CMA may not issue a ruling until after the deadline for the deal to complete.

If the CMA rules a merger would affect competition after it has been backed by shareholders, the two firms would have to be legally separate with their own management teams.