According to the Sunday Times, insurance takeover specialist Resolution, is in advanced talks to acquire rival Phoenix Group for 1.2 billion pounds in shares.
Resolution, founded in 2008 by entrepreneur Clive Cowdery to buy underperforming life insurers and merge them into a more profitable whole, is close to securing a deal after presenting its plans last week to heavily-indebted Phoenix’s bank creditors, the paper said.
Resolution faces competition from Swiss Re, whose Admin Re unit specialises in buying up life insurers such as Phoenix that are closed to new business, as well as buyout firm CVC.
An offer of 1.2 billion pounds would represent a 40 per cent premium to Phoenix’s closing price of 488.5 pence Friday, which valued it at about 859 million pounds.
Phoenix’s shares have fallen by a fifth since the start of the year, underperforming an 18 percent drop in the European insurance share index .SXIP.
Source : Reuters