Friends Provident has followed up its rejection of a takeover approach from Resolution with proposals for a merger of the companies.
Friends is now proposing a merger with Resolution Limited in a move that would involve Resolution shareholders exchanging their shares for new shares in Friends Provident, which would become the group’s holding company.
The life insurer is convinced of the need for consolidation in the UK life industry, where too many operators are chasing too little business while facing big changes in rules governing distribution and capital requirements.
Critical illness insurance: News update: 20/07/2009
