Life Insurance -
Pearl readies Resolution bid - 28/09/2007
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The mooted £9 billion merger of life insurance companies Resolution and Standard Life might be derailed by rivals Pearl, it has emerged.
Having yesterday announced that it was planning a rock-bottom £4.5 billion - or 660p per share - offer for Resolution, the firm said today in a statement that such a merger would create "significant risks" for shareholders in both companies.
Muddying the waters still further, this morning's statement went on to say that there can be "no certainty" that Pearl "will make an offer for Resolution or as to price or timing of any such offer".
This comes despite the firm's buying up of Resolution shares since the proposed merger was announced in July - Pearl now holds the biggest single stake in the company at 16.5 per cent of the total.
Resolution is the biggest acquirer of life insurance funds in the UK.
In response to Pearl's announcement yesterday, shares in Resolution dropped 10.5p to 684.5p, the Guardian reports.
Earlier this month, life insurance firm Standard Life also confirmed that it was considering a Resolution bid.
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