Standard Life has scrapped its £4.9bn battle for Resolution - a move widely anticipated after a drop in its shares slashed the value of its bid.
Standard's move marks its withdrawal from the biggest insurance takeover battle since 2000, when CGU bought Norwich Union for £7.4bn to create Aviva, the UK's largest insurer.
The abandonment now leaves the way open for rival suitor Pearl Assurance, which already owns a quarter of Resolution.
The board of Standard Life has decided not to increase or restructure its offer in any way.Standard's cash-and-shares bid was initially backed by Resolution's board when it was tabled last month, but that offer was trumped less than an hour later by Pearl, which moved in with an all-cash offer.
