Resolution and Friends Provident draw closer to merger
Resolution, the closed life fund consolidator, has confirmed plans to proceed with a merger with life insurer, Friends Provident.
An extraordinary general meeting, at which shareholders will vote on the proposal, will take place in late October. Final details of the agreement are expected to be confirmed in November.
Pearl Group (a competitor and major shareholder in Resolution) and Standard Life have both shown interests in the merger plans.
The companies have examined Resolution’s books but no offer for the business has been forthcoming.
Pearl was rumoured to be on the brink of making a bid but a spokesperson for the group has reported that: “There can be no certainty that Pearl will make an offer for Resolution or as to price or timing of any such offer.”
However, Resolution has requested that the Takeover Panel set a timetable “by which potential offerors must clarify their intentions”.
Pearl, which holds a 16% share in Resolution, is opposed to the merger because it believes it will not create more value than other options, although the group has not yet expanded on what other options it has in mind.
Some analysts are still expecting Pearl to team up with Standard Life to make a joint offer.
Category: Insurance News, Resolution News
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