Equitable Life finds a buyer
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.
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