Pearl slams Resolution capital return plan

Resolution and Friends Provident announced it would return £1bn to shareholders in both 2008 and 2009 if the proposed Friends Financial merger is approved. They plan to generate the capital from existing internal cash resources and possibly new debt in 2008, while the disposal of Resolution assets would raise the funds the following year. But Pearl, Resolution’s largest shareholder, wonders why any Resolution surplus capital and disposal proceeds should be shared with Friends Provident shareholders. It says the Resolution shareholder share of any capital returns would be less than 49%...