Equitable forced to abandon fund sale
Turmoil in financial markets puts stop to Equitable Life' sale of its £7bn with-profit fund
The turmoil in financial markets has put a stop to
Equitable Life’s sale of its £7bn
with-profit fund, as it has become impossible for the stricken mutual to make a
Equitable called a halt to the intiative just weeks after Prudential, the
considered frontrunner to acquire the fund, pulled out, citing better
opportunities for value-creating deals elsewhere.
Equitable, which closed to new business eight years ago after it came close
to collapse, had hoped to strike a deal by the end of this year. However, the
financial crisis made this impossible, people familiar with the situation told
the Financial Times.
The company said that, although Equitable had received a number of proposals,
none met its requirements. Equitable is now left with the prospect of running
down the fund itself.