Counter-bidders’ deadline in Resolution merger

by Gill Montia

Story link: Counter-bidders’ deadline in Resolution merger

Resolution and Friends Provident are moving closer to their £8.4 billion merger, having set November the 5th as the date for emergency shareholder meetings to approve the deal.

The Takeover Panel will now be able to impose a deadline for counter-bidders, Pearl Group and Standard Life, to make an offer.

Analysts expect Pearl, which is a closed life group and Resolution’s largest shareholder, to join forces with Standard Life and make all-cash offer for Resolution.

Pearl has already set out its opposition to the proposed merger, and Standard Life is reported to be still considering its options.

Meanwhile Friends Provident has published a trading update in which it states that it expects the increase in its life and pension sales to be above expectations for the nine months to the end of September.

The forecast now stands at 16%, which would take sales to over £5.4 billion, with UK sales accounting for £3.4 billion of that figure.

Resolution is valued at around £5.5 billion and if Pearl proceeds with its plans for a bid it would need to raise in the region of £3 billion.

It is understood that Pearl has already secured financing from Morgan Stanley and Deutsche Bank.