View more on these topics

Pearl set to clinch victory in battle for Resolution

Pearl looks set to win the long and bitter battle for Resolution after Standard Life withdrew its offer and conceded defeat.

Standard said it would not raise its £4.6bn cash and shares offer on Monday although it still believed it offered better value than Pearl.

It said: “The board has concluded that a revised offer would not create sufficient value for Standard Life shareholders at a level that is likely to be successful.”

The value of Standard’s offer had fallen significantly in real terms after its share price slumped to its lowest level since flotation last June. Its share price surged by 6.5 per cent on the news by close on Monday.

Resolution has confirmed it is locked in talks with Pearl but has not recommended its £4.9bn cash offer to shareholders. Pearl increased its stake in Resolution from 24.2 to 25.93 per cent on Monday afternoon.

Reports suggest Resolution chief Clive Cowdery will recommend a deal if Pearl raises its offer. The deal will then be finalised quickly, freeing Cowdery to launch another buyout vehicle.

Blue Planet Investment Management assistant investment manager Harish Haridas says the well publicised clash of personalities between Cowdery and Pearl chief executive Hugh Osmond will be a significant factor in the deal.

In 2005, Osmond bought Pearl’s £26bn closed funds from under Cowdery’s nose and there has been sniping between the two camps in the various regulated announcements surrounding the bids.

Cicero Consulting director Iain Anderson says: “Pearl has shown a remarkable change of approach from its past iceberg communication strategy. The personality clash makes the affair more colourful but they are both businessmen at the end of the day and if the deal is right, the deal will get done.”


Repo land

Tanya Powley assesses the massive number of foreclosures sweeping throughout the US as the sub-prime crisis hits home with a vengeance

Define time

Neil Loney and Mark Thomas, of PA Consulting Group, believe that a radical new approach to life and pensions is needed with products that feature better-defined outcomes, a risk-reward element shared between provider and consumer and simple direct distribution, cutting out IFAs

Exam paper

The CII’s RDR response suggests that advisers must get themselves to double FPC or diploma in financial services to call themselves professional or general advisers in four years, with a grace period of a further two years, provided the advice is approved by another adviser.

Harris Associates' view on the UK’s vote to leave the EU

By David Herro, Partner, Deputy Chairman, Portfolio Manager and Chief Investment Officer of International Equity at Harris Associates Britain’s vote to exit the European Union has led to significant uncertainty across global markets. We believe market impact of this uncertainty, though severe, is more of a shorter-term phenomenon which will provide an opportunity for long-term […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm