Page 15 -

Life/Swiss Re consortium is capable of being
implemented without the support of Pearl”
Source: Edinburgh News
(29/10/2007)

On 11 November Sandy Crombie stated that it had been decided
not to increase or restructure its original agreed bid.

“We had been working on a bid structure for Resolution
that we thought would win. But there was another key
element and that was value. And we felt that if we put
too much in, it would not be of value to our
shareholders.

“The fall in our share price was a very significant factor.
When we first made our cash and shares offer it valued
each Resolution share at £7.16. That had fallen by
Friday night to £6.91. To get up to a winning position
from here would have prejudiced value to our
shareholders.”
Source: The Scotsman
(12/11/2007)

Critics questioned Standard’s strategy, particularly after promoting
its flotation on a strong organic growth basis which then appeared

to be dropped in favour of acquisitions.

“Acquisition was seen as an extension of the organic
growth strategy. Resolution could have been folded
into the company quite easily.

Friends Provident & Resolution would have been a
significant rival if they’d merged. It became very difficult
for Standard Life to compete with private equity firm. It
was the right target but not at any price. It was the
correct decision not to pursue it at any cost.”
Gerry Grimstone

However, the share price immediately rose with the news that
Standard would not restructure its bid - up 13% at one point,
before settling to close up 6.5%.