Resolution drops £4.9bn Standard Life bid

Source: Stock Market Digital

Date :29/10/2007 17:01:33

Resolution has dropped its support for the £4.9 billion takeover bid by Standard Life after rival Pearl increased its stake in Resolution to 24.2 percent.

Pearl offered 720p a share (£4.93 billion) just prior to the bidding deadline and the company – which already owned 16.5 per cent of Resolution’s shares – also upped its stake in the company by 7.7 per cent.

Pearl has expressed criticism over Edinburgh-based Standard Life’s acquisition proposal, which owner, Hugh Osmond, described as “poorly conceived”.

As the largest shareholder, it could now potentially block Standard Life’s offer, which requires the backing of 75 per cent of shareholder capital.

Completing the deal

Resolution pulled out a merger deal from Friends Provident last week in favor of the proposed takeover by Standard Life/Swiss Re, which was offering 517p in cash and 0.715 Standard Life shares for every Resolution share.

Standard Life is considering restructuring its bid for Resolution to reduce the number of shareholders needed to approve the offer for what would be the U.K.'s biggest insurance takeover.

``Standard Life is confident of its ability to complete this transaction potentially using a revised structure,'' Standard Life spokesman Scott White said.

October 29 2007

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