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Daily Insurance Industry News
Monday 20th of May 2019
October 30, 2007

Standard Life rapped by Resolution Takeover Panel

by Gill Montia

Story link: Standard Life rapped by Resolution Takeover Panel

Standard Life rapped by Resolution Takeover Panel

Standard Life has been reprimanded by the Takeover Panel for suggesting that it might increase its bid for Resolution, the closed life funds consolidator, and failing to do so.

The panel has ruled that Standard Life is in breach of the Takeover Code, after the company announced that it may change the structure of its offer.

Such a change would mean that it would only need the approval of 50% of Resolution shareholders, rather than 75%.

The suggestion was made at a time when Pearl Group, which is also interested in acquiring Resolution, made a £4.94 billion all-cash counter-bid, while at the same time increasing its holding in Resolution.

Pearl has also criticised both Standard Life and Resolution, saying that it had “difficulty understanding” why Resolution’s board was not recommending its “higher and more certain cash offer”.

The group, which is Resolution’s largest shareholder, believes that Standard Life’s plans to acquire Resolution contain “no strategic logic.”

Pearl is also “extremely sceptical” about the cost savings Standard Life expects to achieve in the event of a takeover.

Meanwhile, Resolution has withdrawn its support for Standard Life’s cash-and-shares offer but at the same time has not endorsed the new bid from Pearl.

 

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