LONDON (Reuters) - Standard Life, Europe’s largest mutual life assurer, said on Sunday it was not aware of any approaches to buy the business, playing down newspaper speculation of a takeover before its planned summer flotation.
"At the present time, there have been no approaches as far as I know," a spokesman for the company said.
The Independent on Sunday newspaper said senior industry
figures expected a bid valuing Standard Life
The Sunday Telegraph newspaper also said a trade sale was being considered by some advisers to Standard Life because of rising costs but the spokesman said a flotation was still the main focus.
"What Standard Life has always concentrated on is actually looking at all the strategic options for the business that will deliver the most value to members," the spokesman said.
Advertisement starts
Advertisement ends
"A temperature check was taken on that when they announced the strategic review in early 2004. A temperature check has continued to be taken on that throughout the course of the last year and a half and demutalisation by far and away is still the best way of delivering the value to members."
The Sunday Telegraph said the cost of flotation was expected to reach 250 million pounds, 150 million more than initial estimates.
Standard Life declined to comment on specific costs associated with the flotation but acknowledged it was a costly process.
"Obviously going through a demutalisation programme is an incredibly complex and therefore expensive process when you’re communicating with a 2.4 million membership base and also a wider 7 million customer base."
At least 1 billion pounds is expected to be raised as part of Standard Life’s flotation. The Edinburgh-based society opted for a stock market listing after a strategic review, making a U-turn after fighting off an attempt in 2000 by some members to force it to demutualise.
Its 2.4 million eligible members will vote on the proposal in May or June and if 75 percent of those who vote agree to end its mutual status it should float in July.
