Friends Provident is trying its best to get its merger with fellow life insurer Resolution signed, sealed and delivered, but it is facing some fearsome opposition. It’s currently involved in a battle for the spoils of Resolution’s closed life assurance funds, with Standard Life and Pearl all hoping to crash the party.

Four FDs are battling to be top financial zombie, and create what will probably be the leading player in closed-life fund management.

What happened

Until recently, Resolution’s suitors were warily circling each other, waiting for somebody to make the first move. But in September, Standard Life made its opening gambit by saying that it would consider a cash and shares offer for Resolution, challenging Friends’ designs for a match-up.

Pearl has implied that it would pay no more than 660p a share for Resolution, a sum that analysts have indicated is insufficient.

What’s going to happen?

Pearl says: ‘There can be no certainty that Pearl will make an offer for Resolution or as to price or timing of any such offer,’ but everyone knows that they’re interested.

So who are the FDs in the frame? By the reported make-up of the mooted Friends Financial board, the luckless Jim Smart is likely to be thumbing through the employment pages. With the other two suitors, the FDs should be in a somewhat stronger position.

Standard Life’s FD David Nish is an industry heavyweight with a proven track record,
but his battle with Resolution FD Jim Newman will be harder to call if his company wins out.

Pearl, whose Life division’s finance function is headed up by Simon Smith, has taken a hard line on Resolution, building a 16% stake.

It said last week that Resolution’s plan to buy Friends Provident contained ‘significant risks’ and wouldn’t create any more value for shareholders than other options.
There are a number of alternative endings that could manifest themselves at the conclusion of this corporate blockbuster.

Pearl could continue snapping up shares in Resolution if its advances are shot down. Both the FDs of Pearl and Resolution may have more on their minds than numbers, too. The characters at the centre of the saga notoriously do not get on, according to reports.

Pizza to pubs entrepreneur Hugh Osmond spearheads Pearl. The relationship between him and Resolution’s livewire chairman Clive Cowdery is said to be frosty.

On top of that, there are suggestions that Standard Life might buy only some funds from Resolution as part of a deal with Pearl.

Will all four FDs still be standing by the time this tale reaches its climax?