Daily Insurance Industry News
Daily Insurance Industry News
Sunday 26th of May 2019
November 12, 2007

Pearl poised for success in Resolution takeover

by Gill Montia

Story link: Pearl poised for success in Resolution takeover

Pearl poised for success in Resolution takeover

Pearl Assurance is expected to be successful in its £5 billion bid for Resolution, the closed-fund consolidator.

A takeover battle with Standard Life drew to a close over the weekend, when the latter unexpectedly conceded defeat.

Standard Life decided not to raise its cash-and-shares offer, which was worth less than the Pearl bid.

The insurer reported that although it was confident of the merits of a takeover, a higher offer would not have created sufficient value for its shareholders.

The news will leave Sandy Crombie, Standard Life’s chief executive, facing strong criticism for the way in which he handled the failed takeover.

Pearl fought an aggressive campaign, making an all-cash bid, while at the same time increasing its holding in Resolution to become its largest shareholder.

The group’s actions made it difficult for Standard Life to return with a restructured bid and some analysts consider that Mr Crombie was outclassed by Pearl’s team, led by chief executive, Hugh Osmond.

Pearl’s attack on Standard Life included criticism of its business model and ability to fund new business, and some now see Standard Life as vulnerable in its defeat.

Consolidation in the industry continues and there is speculation that Standard Life could itself become a takeover target.


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