Resolution terminates talks with Phoenix

Acquisitive insurance group Resolution, which has recently been the subject of press speculation over the possible acquisition of Phoenix Group Holdings, has confirmed that talks have terminated.

The firm said that it did investigate the company and entered into talks with both Phoenix and its lending banks, but the transaction was not deemed suitable.

In a statement the firm said: "As part of its UK Life Project, Resolution continually investigates a variety of bolt-on opportunities. Any acquisition must have a strong financial case and enhance returns to shareholders. The hurdle to executing any particular transaction is therefore high."

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The company recently announced its intention to return a further £250m to shareholders in the first half of 2012, in a move subject to the delivery of planned capital synergies expected to be delivered in 2011 and following regulatory approval.

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