Insurer Standard Life has confirmed that it has made a takeover bid for rival Resolution, which is currently planning a merger with Friends Provident.
A spokesman for Standard Life confirmed that the company's mostly cash offer values Resolution at around £4.9 billion.
He said: "We can confirm that we have made an unconditional offer to the board of Resolution and presented what we believe to be a compelling proposal for its shareholders."
The spokesman, who said the offer would also create "significant" value for Standard Life's own shareholders, added that the company was pleased the board of Resolution was considering its offer and looked forward to hearing from the takeover target shortly.
News of the offer comes after Friends Provident and Resolution announced plans yesterday which analysts said were designed to maximise support from their shareholders for their proposed merger.
In separate statements both companies had confirmed that they would return £1 billion to investors in 2008 as part of their planned new venture, Friends Financial.
A further payout would also be made to those with a stake in the new company in 2009, Friends Provident and Resolution revealed.
However the emergence of the Standard Life bid could derail their merger plans, with Resolution bosses expected to meet to discuss the offer later today.
Resolution suitors had been given until today to make formal bids for the insurer, whose chairman Clive Cowdery has stressed that only a "compelling offer" will divert the group from its planned £8.6 billion tie-up with Friends Provident.
A separate 691p-a-share offer made by Pearl Assurance, which has a 16.5 per cent stake in the insurance group, was rejected by Resolution last Friday on the grounds that it "significantly" undervalued its business.
Friends Provident has previously denied reports that it had been planning a share issue to boost its finances if the Resolution deal failed.
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