Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 22nd of May 2019
October 24, 2007

Resolution merger £2bn better for shareholders

by Gill Montia

Story link: Resolution merger £2bn better for shareholders

Shareholders of Resolution and Friends Provident have been told that they will be £2 billion better off if they agree to the proposed merger of the companies, rather than a takeover.

The Takeover Panel’s deadline for bidders to declare their interest in Resolution has been set for tomorrow and Standard Life and Swiss Re are expected to table a bid before it expires.

It is rumoured that they are considering an offer that would value Resolution at £5 billion.

This would be significantly above last week’s £4.7 billion bid by Pearl Assurance, Resolution’s largest shareholder.

The offer was instantly rejected by Resolution’s board as undervaluing the business.

Merger plans between Resolution and Friends Provident were first mooted in July of this year and may be approved at an extraordinary general meeting of shareholders on the 5th November.

According to Clive Cowdery, Resolution’s founder, the merger has compelling value for shareholders.

Finally, Friends Provident has issued a third-quarter sales update showing a 21% increase in life and pensions new business sales for the first nine months of 2007.

 

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