Standard Life may restructure Resolution bid

LONDON (Reuters) - Standard Life (SL.L: Quote, Profile, Research, Stock Buzz), whose 4.9 billion pound ($10.1 billion) bid for Resolution RSL.L has been challenged by another rival Pearl, may change the structure of its offer to win its target, it said.

Standard Life said it was exploring, jointly with Resolution, "a number of options for restructuring its proposed offer".

The options include proceeding by way of a takeover rather than a scheme of arrangement, it said in a statement on Sunday, confirming earlier comments from sources.

Edinburgh-based Standard Life, backed by Swiss Re (RUKN.VX: Quote, Profile, Research, Stock Buzz), said it continues to believe strongly in the strategic rationale of the deal and that its offer "provides compelling value".

It unveiled its cash-and-share offer on Friday, which was supported by Resolution's board.

But that offer, worth just over 716 pence at Friday's closing prices, was trumped less than an hour later by an all-cash 720p per-share approach from Pearl, also Resolution's top shareholder with a stake of just over 24 percent.

Under the current scheme structure for its offer, even if it retains the board's blessing, Standard Life needs 75 percent of Resolution shareholders present and voting to approve the offer, which means Pearl could block the deal.

By restructuring a deal as a takeover Standard Life could lower the approval threshold to 50 percent.

That alone might not be enough to stop Pearl from blocking a key aspect of the deal -- the 2.35 billion pound sale of some Resolution assets to reinsurance giant Swiss Re for cash -- and so would have to be backed with other changes, sources close to the situation said.