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Resolution says talks over possible sale terminated UPDATE
AFX
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(Recasts, adds analyst reaction, background)
LONDON (AFX) - Closed life fund consolidator Resolution PLC said talks with various parties over a possible sale of the group have been called off, leaving it free to resume looking for possible acquisitions and mergers.
Resolution, which specialises in buying and profitably managing life insurance funds that no longer accept new customers, announced in November that it had entered talks with unnamed parties over a range of possible deals including a sale of the business.
'The particular discussions that may have led to a possible offer for the company have now been terminated. Resolution continues to assess possible business combinations which would not constitute an offer for the company,' the group said in a brief statement today. A spokesman declined to provide further details.
By 9.52 am, Resolution shares were down 5 pct at 615 pence, valuing the group at about 4.1 bln stg, as hopes of an imminent takeover offer evaporated.
Resolution's admission of takeover talks last November was issued at the request of the UK Takeover Panel after The Sunday Times reported that the group had held discussions with UK insurers Prudential PLC and Standard Life PLC.
Collins Stewart analyst Tim Young retained his 'buy' recommendation on the shares today, noting that the end of takeover talks will free the company to communicate its strategy to the market more clearly.
'Investors should use the inevitable depression in the price following the termination of a bid as a buying opportunity,' he wrote in a note.
Resolution reports its full-year results next Tuesday.
myles.neligan@thomson.com
ssr/pmi/wj/mn/slm/mn/wj
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