Resolution had initially backed Standard Life before reneging on its support, calling for a level playing field among suitors. However, an increased offer of £4.9 billion from Pearl has led to Standard Life pulling out of the deal, indicating that it did not see its bid being successful.
Pearl had recently increased its shares in Resolution to 25 per cent, giving it enough power to veto rival bids. The offer by Pearl was also confirmed to be a cash only bid, compared to the Standard Life offering of cash and shares.
Announcing the withdrawal of the Standard Life offer, the organisation admitted that any increase in its offer would not have represented value to its shareholders. However, a spokesperson added that the offer of Resolution ‘would have delivered significant financial and operational synergies’.
Sandy Crombie, group chief executive of Standard Life, said: “We thought we could find a way through – but I can’t fail to recognise that, against the background of the current conditions, the currency I have – the share price – is worth less than it was.”
A statement from Pearl said: “Obviously, it’s very good news. We will be talking to Resolution. And obviously, we will continue with our offer as planned.”
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