Standard Life will swallow up the funds of Glasgow-based Resolution Asset Management and "fully integrate" the business if it succeeds in its bid for the parent company, the insurer said last night.
Standard cited "substantial overlap in investment capabilities, funds, products and distribution channels" between RAM and Standard Life Investments, casting a considerable shadow over the 400 jobs at Glasgow's most successful surviving fund manager.
Standard would also "integrate the rest of Resolution Asset Management, including sales, marketing and investment functions within Standard Life's operations".
It would also set up a corporate office in London, and several operational divisions not necessarily in Edinburgh.
The disclosures came as Standard Life last night rejoined the verbal battle with rival Pearl over its offer for Resolution, giving further details which chief executive Sandy Crombie said "underline the attractions of our offer".
The insurer said: "Standard Life's head office will continue to be in Edinburgh" but went on "and it intends to operate certain group functions from London". Resolution's head office in London would be retained "as a corporate office of the enlarged group", which would be structured into a number of operational divisions.
Standard is targeting at least £71m in annualised savings by the end of 2010. It says £35m will come from the integration of Resolution, £18m from head office and life and pensions administration savings, and £18m from the enhanced value of new business.
It says the programme would be 75% complete in 2009 and 100% in 2010, while one-off costs would be £65m next year and £17m in 2009.
"The board of Standard Life considers that these savings have been conservatively estimated and are confident that they will be delivered, an implementation plan is in place," the company said.
It said merging the closed fund businesses it is acquiring, notably the life division in Glasgow where 1500 jobs are already outsourced to Capita, would at least match the £250m saving envisaged by Resolution for its own plans.
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