Abbey to raise ScotAm stakes
Monday 10 February 1997
The terms of the banking to insurance group's original pounds 1.4bn bid may be varied to make them look more attractive to ScotAm's policyholders, but insiders played down a report over the weekend that a new offer would be as high as pounds 2.2bn.
An Abbey spokeswoman said yesterday: "Any figure given at this stage is speculative, because we haven't had full talks with ScotAm and seen the data we need."
She said she could not comment on a higher offer. "We would look at a mix of embedded value, goodwill, loans and free asset value, but we need to talk to ScotAm first and any figures are speculative, because we haven't improved our offer as yet."
At the moment, Abbey is offering pounds 400m for the goodwill of the Scottish life assurer, a sum which will essentially be passed to policyholders, and pounds 1bn for the so-called "embedded value" in the life fund. This is in effect a payment in exchange for the right to take up to 10 per cent a year of future surpluses.
The Pru's deal is more complicated, involving a loan to the life fund and the payment to policyholders of Scot Am's "free assets" - the amount it is forced to set aside under government regulations to ensure its financial strength.
The Abbey move comes as the bidding process shifts into a more serious phase, with potential offerors being asked to sign confidentiality agreements by ScotAm's merchant banking advisers at SBC Warburg early this week.
As well as Abbey and the Pru, it is thought that Fortis, a Belgian-Dutch financial conglomerate, and AMP, the Australian insurance group, are serious contenders.
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 3 Ed Sheeran dedicates song to David Cameron
- 4 Now we know whose fault it is if you end up being murdered in Thailand
- 5 35,000 walrus gather ashore on north-west Alaska beach 'for a rest'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Amal Alamuddin: Human rights lawyer's legal chambers forced to upgrade website following George Clooney wedding
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...