Equitable Life finds a buyer

funds-management-business/amp/

5 February 2001
| By John Wilkinson |

Halifax is expected to buy Britain troubled Equitable Life later today, having beat off a last-minute bid from GE Capital.

Details of Halifax's bid are expected to be announced in London tonight and will have to be voted on by Equitable's shareholders before it can go ahead.

GE Capital made an offer of £1.2 billion and Halifax is expected to top that figure at today's announcement.

The GE bid consisted of a loan of £800 million to provide extra capital to the troubled Mutual. These monies would have been used to finance a one-off settlement with Equitable's 90,000 policyholders who hold guaranteed annuity rate policies. These liabilities are expected to be more than £1.5 billion.

GE was also to pay £400 million in cash to buy Equitable's 450 strong salesforce, computer systems and its £30 billion funds management business.

Halifax is understood to be offering £500 million to buy Equitable's operating business. Last week, AMP pulled out of talks with equitable about buying its operating business. It is understood the two parties could not agree a price for the business.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks 1 day ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 6 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 4 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND