Standard Life says it has decided to withdraw because a revised offer would not give its shareholders sufficient value leaving the way clear for Pearl to win the battle for Resolution.
Resolution released a statement this morning confirming it was in talks with Pearl and would be making a further announcement in due course.
Pearl has upped its stake in Resolution this morning from 24.2 per cent to 25.93 per cent.
Standard Life’s share price jumped by 14 per cent after it announced the termination of the Resolution deal.
Standard Life 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. As a result, the Board of Standard Life has decided not to increase or restructure its offer in any way and, accordingly, Standard Life does not expect its offer to be implemented. The Board of Standard Life has also given notice to terminate its obligations under the merger agreement with Resolution.”