Resolution’s stand
THE takeover battle for insurer Resolution took a new twist today after the company withdrew its backing for Standard Life’s £4.92bn takeover offer. The decision comes after Standard’s rival, Pearl, moved in with a higher £4.94bn indicative offer on a frantic day in the City on Friday.
Pearl has also built up a 24% stake in Resolution. This effectively blocks Standard’s offer, which needs support from 75% of Resolution’s shareholders. Resolution said it had withdrawn support for Standard Life’s offer “in its current form”, but added that it “continued to see real strategic benefit in the combination of Resolution and Standard Life”.
Homebuyer blow
CONSTRUCTION and housebuilding group Kier today said homebuyer confidence had been hit by the credit crunch and high-profile crisis at mortgage bank Northern Rock.
The lender’s liquidity problems and subsequent run on the bank - the first in nearly 150 years - saw a “notable” drop in the number of visitors to Kier’s sites, according to the firm.
But Bedfordshire-based Kier said its homes division had made a “satisfactory” start to the year despite the knock to buyer sentiment and uncertainties in the mortgage market.
