LONDON (AP) -- British insurer Resolution PLC moved to strengthen shareholder support for a $7.5 billion takeover of Friends Provident PLC Wednesday, promising to return around $4.1 billion to shareholders of the combined company.The 2-billion pound cash return announcement comes a day ahead of a regulatory deadline for companies that have said they may bid for Resolution. Insurers Pearl Group Ltd. and Standard Life PLC have both said they are considering a formal bid.
Resolution and Friends Provident said they would return 1 billion pounds ($2 billion) -- or 74 pence ($1.52) for each existing Resolution share, and 23 pence ($0.47) to those of Friends Provident -- to the combined company's shareholders in 2008.
The pair then would make another 1 billion pound ($2 billion) payout by April 2009, financed through sale proceeds of undisclosed, low-returning Resolution assets the two plan to offload.
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