This looks interesting.
Insurance entrepreneur Clive Cowdery and several other executives involved in the £5bn sale of Resolution are being investigated by the FSA.
(emphasis ours).Resolution Limited (the “Company”) has been notified by its Chairman and by its provider of operating services, Resolution Operations LLP (“ROL”), that the former chairman and executive directors of Resolution plc (now Pearl Group Holdings (No 1) Limited) (“RPLC”) have become the subject of an investigation by the Financial Services Authority (the “FSA”) in relation to certain actions of RPLC and of such former directors during the period between October 2007 and May 2008. This includes the Company’s Chairman, and a number of members of the ROL operating team (the “RPLC Directors”).Those directors included Cowdery, chairman Mike Biggs, Ian Maidens and Jim Newman
The period between October 2007 and May 2008 was, of course, a period of intense corporate activity at Resolution.
In October 2007, Resolution was set to merge with Friends Provident to create a £8bn insurer , when Hugh Osmond’s Pearl, which had already amassed a large stake in Resolution, gatecrashed the party with a £4.5bn bid.
A few weeks later, Standard Life threw its hat into the ring, with its own proposal for Resolution.
Osmond eventually won the day, but only after raising his offer. And after a number of hitches the takeover was eventually signed off by the FSA in August of last year.
Cowdery et al quickly bounced back, creating a new vehicle, Resolution Limited, which was listed in December. The company raised £600m to buy financial services companies, but has yet to make a move.
New Resolution declined to comment on the investigation on Monday, which is said to be at an early stage.
But until it is completed, it will not be able to complete any acquisitions.
Whilst the Company would not expect to submit a final application to the FSA for change of control in respect of potential acquisition opportunities and therefore complete any acquisition until this matter has been resolved, ROL remains fully engaged in assessing and progressing such opportunities for the Company.
And a special committee will be set up.
The Company continues to be led by its Chairman, Mike Biggs. The Board has temporarily appointed Phil Hodkinson as Senior Independent Director and he will chair a special committee of the Board comprising the directors other than the Chairman. This committee will address any matter concerning the FSA investigation as it relates to the Company.
One final note, the chief executive of new Resolution is none other than John Tiner, former chief executive of the FSA. His role in this matter remains unclear.
UPDATE: “Friends” of Mr Tiner have been on. He wasn’t at the company at the time, clearly, so he has nothing to do with the investigation.
Related Link:
Resolution lists on the LSE – RNS
Cowdery’s Resolution raises £600m – FT.com