F&C's takeover of Resolution Asset Management looks to be in tatters after the life insurer dropped ...
F&C's takeover of Resolution Asset Management looks to be in tatters after the life insurer dropped its plan to merge with Friends Provident.
F&C parent company Friends had its merger bid for Resolution trumped first by Standard Life and then by Pearl last Friday as a bidding war broke out between the two groups.
Under the deal with Standard Life, Resolution's asset management arm would be merged into Standard Life Investment's (SLI) platform.
The deal would take SLI's assets under management to £191bn, including a £24bn long term contract with Swiss Re.
SLI said it was too early to define any structures or discuss what would happen to Resolution's Glasgow office and range of boutiques.
Meanwhile Pearl said it planned to retain Resolution Asset Management within an enlarged Pearl group if its takeover succeeded.
Despite the setback, F&C said its growth plan remained on track.
"F&C remains committed to its three-year plan and the associated target of increasing underlying EPS by 50% from 2007 to 2009," the group said.
Advisers said the merger between Standard Life and Resolution would create similar problems to the proposed F&C/Resolution tie-in.
Darius McDermott, managing director of Chelsea Financial Services, said: "It has always appeared that Resolution does not want to deal with Pearl, while Standard Life and Resolution have their own distinct fund management companies.
"This would obviously lead to overlaps and job losses.
"I assume the senior fund managers at SLI would take precedence over the others but it also would want to take any of Resolution's talent."
Whitechurch's managing director Gavin Haynes agreed the idea of asset management teams of SLI and Resolution running side-by-side would be unrealistic.
"It is difficult to tell until the companies' full interests are expressed," he said. "Maybe the Pearl acquisition would be more preferable for the fund managers as it does not have any UK retail presence."