STANDARD LIFE will this week up the stakes in its bid battle for rival insurer Resolution by dropping a key condition of its bid.

It is expected to reduce the level of acceptances it needs from Resolution shareholders from 75% to just 50% The Edinburgh-based insurer is understood to be planning to meet Resolution’s board at the end of the week to present the revised terms.

Standard is also working on ways to increase the value of its cash and shares bid, worth 711p per share on Friday, or £4.9 billion. Standard could raise its offer up to 750p per share in an attempt to strike a knock-out blow.

Standard, led by chief executive Sandy Crombie, is embroiled in a vicious battle for Resolution with Pearl Group, controlled by entrepreneur Hugh Osmond. Pearl has offered 720p per share in cash and amassed a 24.18% stake in Resolution. The stake allows it to block Standard’s current bid. Osmond also claims Pearl can thwart Standard even if it drops the level of shareholder acceptances to 50%.

Under the present proposal, Standard has agreed to sell on some of Resolution’s funds for £2.35 billion. The buyer would be Swiss Re, another big player in the insurance market.

But this side deal would need to be approved by 75% of investors. Standard has become increasingly confident that it can find a way round the issues.

Standard is also looking at ways to boost its offer. One option would be for Swiss Re to pay more. Crombie could also try to inject more cash into his bid by lining up a large support-ive shareholder to buy new shares in Standard.

Some investors have accused Standard of a u-turn and abandoning its organic growth strategy. The insurer has come under pressure to offer executive roles to Resolution’s management, including chief executive Mike Biggs, to beef up its top team.

This weekend, in another twist in the ill-tempered battle, Pearl is understood to have asked the Takeover Panel to force Standard to withdraw claims that it can cut costs by £71m under the deal and gain £250m in savings through merging its funds with Resolution.

Pearl argues the figures are misleading since Standard cannot complete a takeover on the current terms.

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