Not usually associated with high-profile bidding wars, the life insurance market this week is the subject of a major business deal that remains an uncertain conclusion. The public battle for closed life insurance fund Resolution has been hotting up for weels, with two major frontrunners established.
Bidding for the fund, which is considered to have an immense value in the life insurance industry, is Edinburgh based life insurance company Standard Life and rival Pearl. Resolution are now refusing to endorse Pearl, who own a considerable stake in the company, and have also withdrawn their recommendation for Standard Life . At the bottom of the heap lies Friends Provident, who had originally hoped to merge with Resolution.
The likelihood of Standard Life being able to afford a larger cash offer remains uncertain. Life insurance industry experts are forecasting that Pearl could sell out for a decent profit . Other life insurance giants could potentially be eyeing up Standard Life as a potential bid target. For Resolution shareholders, the battle could be about to get even more interesting.




