Tycoon proposes £1bn float

Sep 10 2008 by Peter McCusker, The Journal

INSURANCE tycoon Clive Cowdery has unveiled plans for a £1bn stock market flotation as he looks to raise funds before a swoop on struggling financial services firms.

Resolution, relaunched last May after Pearl Assurance bought the insurance firm of the same name for £4.98bn, will float in November, the group says.

Mr Cowdery, 45, has hired a team of heavy hitters for the investment vehicle, including John Tiner, former chief executive of the Financial Services Authority.

Resolution will initially seek to raise £1bn, but hopes to build an eventual acquisition war chest of more than £5bn to snap up firms in life assurance and savings sectors, banking and credit, asset management and insurance markets.

The takeover firm attempted to gatecrash Bradford & Bingley’s planned sale of a stake to private equity firm TPG in June.

It secured the backing of B&B’s biggest investor for its plans to pump £4bn into the embattled lender, but walked away after failing to reach agreement with the bank’s board.

Resolution is also thought to be eyeing Friends Provident.