Equitable Life auction gathers pace

By THIS IS MONEY
Updated:

 

Rival insurers planning to bid for the troubled £5 billion Equitable Life are to be sent details of the auction next week - and will be told to submit offers by the end of September.

Equitable put itself up for sale after losing a legal battle over the payment of 'guaranteed annuities' to customers. It had wanted to reduce payments to these long-standing policyholders, but has been forced to honour its original promises - triggering a huge bill.

Bidders for Equitable are expected from the UK, Europe and the US. CGNU and Prudential are thought to be particularly interested in their rival, as are Aegon of Holland, and Axa.

In an unusual move, Equitable bosses have said they will send members details of all shortlisted bidders to members when it announces its recommended suitor next year. Members will have to vote on the purchase process.

Most watched Money videos