Weekend Money Stories: a round-up

The battle for insurer Resolution was the talk of the weekend money and business sections as Pearl increased its bid and threatened Standard Life's chances of a takeover.

The Financial Times turned the spotlight on Friends Provident Resolution's former merger partner which the paper said is now vulnerable to a takeover itself and the Mail on Sunday reported that Standard Life would be willing to join with Pearl and make a joint bid.

Northern Rock featured in more takeover talk as private equity group JC Flowers prepares its offer. The Sunday Telegraph compared the management of JC Flowers to its rival Virgin and The Times on Saturday threw another bidder, US financial services group GMAC, into the mix.

Reports by the New Model Adviser news team.

THE FINANCIAL TIMESThe Financial Times on Saturday covered the Pearl £4.9 billion all-cash bid for Resolution in both the FT Weekend and the Companies & Markets pages. Andrea Felstead reported that Friends Provident is now a vulnerable target after its talks with Resolution fell apart. Both Zurich and US private equity group JC Flowers were thought to be looking at the insurer.

The FT Money section reported that those with a bearish outlook on commercial property could benefit from a downturn in the sector. The Bank of England warned that commercial property was 'particularly prone to further shocks' and the Royal Institute of Chartered Surveyors predicted a fall of 5% in commercial property prices.

However, there are winners including property hedge funds and the paper urged investors to spread-bet on the price of listed commercial property funds and companies.

Sharlene Goff reported that an increasing number of wealthy families are reluctant to pass on that wealth to their heirs, who they believe will become demotivated by the inheritance. Families are imposing strict conditions over how and when heirs inherit money. Over a third of families questioned by Barclays Wealth thought it was a bad idea to leave large sums of money to heirs.

The burgeoning middle classes in emerging market economies means that managers of funds investing in these areas are showing enthusiasm for mortgage lenders despite the recent fallout from the sub-prime crisis, reported Elaine Moore.

Mortgages in emerging markets do not carry the same risks as lending to individuals in the West and Aberdeen Asset Management has increased its exposure to consumer and financial themes in emerging markets to 68%.

THE INDEPENDENT The Independent on Saturday Save & Spend section led with a guide on releasing cash from your home. It touched on the obvious solution of downsizing and also the more complicated ways to release cash such as equity release plans like lifetime mortgages and home reversion plans.

James Daley urged people to seek professional advice to ensure that they have the correct product and know how much money will still be left to pass on. He reported on the dangers of sale and lease-back schemes, most of the schemes are offered by unregulated companies and there has been an increasing number of people who have been given a short-term lease rather than a lease until the end of their life.

The business section reported on the battle for Resolution after Hugh Osmond's Pearl Group looked set for victory after putting an offer of 720p-a-share on the table, trumping Standard Life's bid. Pearl also increased its stake in the company to more than 25% which makes it difficult for Standard Life to take over Resolution.

The Co-operative Bank has agreed to change its banking application forms to include a 'civil partnership' option. It had previously said that there was no legal requirement to do so since the change in the law allowing civil partnerships two years ago, but it has now backed down under pressure from the gay and lesbian community. It has changed its online form and has vowed to change the paper forms in the next print run.

The Independent on Sunday told of a court case paving the way for financial advisers and providers to reclaim compensation they paid for allegedly mis-selling endowment policies.

The Money section story by Annie Shaw said retired adviser Eifion Hughes recovered much of the compensation the Financial Ombudsman Service made him pay for mis-selling a Norwich Union policy. If there is no shortfall when the endowment reaches maturity in 2010, he gets some of the award.

The Business section led with a story written by Simon Evans on Markets in Financial Instruments Directive (Mifid), which takes effect on Thursday. The purpose of Mifid is to create a single market and regulatory system for investment services across Europe but many companies are likely to be unprepared.

A story by Jon Mainwaring warns there are tough times ahead for the Alternative Investment Market (AIM). AIM has already had its troubles since it was founded 12 years ago and now the changes to capital gains tax, which could mean an increase in tax on gains made from its shares by as much as 80%, is the latest blow.

THE DAILY MAIL The Financial Mail on Sunday led with the bidding war between Standard Life and Pearl over insurer Resolution. The move by Pearl to increase its stake in the company to more than 25% has scuppered Standard Life's plan of needing 75% of shares to clinch the deal.

Standard Life chairman Gerry Grimstone was said to be considering an offer to accept less than 75% of Resolution's shares and ditching bid partner Swiss Re to team up with Pearl.

Banks have welcomed Alistair Darling's plans to allow confidential bail-outs of financial institutions but panic has risen about stricter controls that may be put in place. Darling is expected to propose a beefed-up deposit protection scheme and keep closer tabs on banks' liquidity positions and capital.

In the personal finance pages payment protection insurance (PPI) comes under scrutiny again. A couple in Somerset were charged £18,250 for insurance that they did not need and could not use by loan company Firstplus, the consolidation company endorsed by Carol Vorderman in its adverts.

Helen Loveless reported that experts were predicting a wave of mis-selling claims against PPI providers due to the continued spotlight on the plans.

A financial adviser talked about the need for critical illness cover after his own eight-year-old son suffered a stroke. Surrey-based Colin Boxhall said: 'Because of my work I have always known how important it is to have adequate insurance in place. But the true value of such insurance doesn't really strike home until you benefit from it.'

The article looked at the declining popularity due to higher premiums and the stricter pay-out restrictions but also showed the benefits of making preparations for a time when you may not be able to work.

THE TELEGRAPHThe Telegraph on Saturday made a contribution to the ongoing housing debate with a front cover claim, based on Land Registry figures, that 80% of buyers (989,000) pay stamp duty.

On the inside pages, the Saturday news section reported that the government's plans for 3 million new homes by 2020 will not be enough to meet the need for housing.

The paper's business pages led with the negotiations over ownership of Resolution, while Legal & General warned that the housing slowdown would hit life assurance sales.

In the money section, the cover feature on how to retire early boiled down to two key strategies: save, and start now. It also covered tax breaks and products.

Further back, the supplement featured the with-profits bonds that offer a decent return, with the best from Liverpool Victoria offering a £47,051 return on a £25,000 investment over 10 years.

In the Sunday Telegraph a Money section story by John Greenwood warned that the government plans to slash the value of retirement packages of workers who move jobs. Under the proposals, future pension benefits for private sector workers may no longer keep pace with inflation.

In another story Greenwood highlighted the problems the elderly face when looking for long-term care. Reacting to a recent report by the Commission for Social Care Inspection, which said some people paying for their own care are also subsidising others funded through their local community, Greenwood warned the elderly not to rush into making a choice, and to claim their attendance allowance, which is a non-taxable benefit.

Further back in Money, Emma Simon reported on a current account launched by Alliance & Leicester that is tailor-made for over-50s. Premier 50 charges a £10 monthly fee but perks include annual travel insurance, a limited form of private medical insurance, and a credit interest of 7%, although this is only for just over a year.

The money section also reported that controversial plans by the government to reduce inflation protection for people who switch jobs could see pension payouts be cut by an average £7,000 a year.

Emma Simon wrote that payouts from with-profit endowments policies continue to fall, with Standard Life's policy paying out just a third of what it did six years ago.

The business section reported that JC Flowers, the US private equity group in talks to buy Northern Rock, is seeking a comprehensive state guarantee for the bank before agreeing to any deal. The centre section compared the management behind rival bidders JC Flowers and Virgin.

THE TIMESAmerican financial services group GMAC plans to back a bid for Northern Rock via Cerberus, reported John Waples and Grant Ringshaw in the Sunday Times Business section. Cerberus is a New York private equity house that owns a 51% stake in GMAC. Virgin and JC Flowers are also still interested in bidding for the beleaguered mortgage bank.

In another story, Ringshaw wrote about troubles at Marsh. The world's largest insurance broker has a date in court for allegedly poaching staff from United Insurance Brokers and gaining confidential business information on its rival.

And Louise Armistead and Dominic Rushe reported that Deutsche Bank, UBS and Credit Suisse are expected to announce big write-downs this week following the credit crash.

In the Money section, David Budworth had tips on how to beat market turmoil. He suggested watching America's Federal Reserve Bank because, when it cuts interest rates, global stock markets usually rally. He also suggested investing in UK companies that make most of their profits overseas, and buying into the market now while prices are relatively cheap.

Further back in the Money pages, Clare Francis sounded the call for consumers to revolt over allegedly mis-sold payment protection insurance (PPI). With around 20 million PPI policies in Britain worth revenues of £5 billion a year, Francis said it could be a bigger revolt than the row over bank charges. Visit Moneysavingexpert for a template letter or complain to www.financial-ombudsman.org.uk.

THE OBSERVERIn the Observer, the paper's money and business section led with expectations that chairman of the Federal Reserve Ben Bernanke is poised to make an emergency rate cut this week as the US struggles with the sub-prime lending fallout.

Alongside, the cover ran a related story: the price of gold has risen 30% in the past year, closing at a near 30-year high on Friday of $779.14 an ounce.

Elsewhere, it reported that chairman and founder of Resolution Life Clive Cowdery will make almost £150 million if a £4.9 billion Pearl Group bid for the company goes ahead.

In personal finance the Observer expanded on US problems with the sub-prime fallout over here: lenders are making it ever harder to access credit and delay in approving sub-prime mortgages.

In pension news the paper reported that more employees are being offered cash 'inducements' to transfer out of their final-salary schemes, but warned that transfers can be complex and often do not offer comparable benefits or security.

GUARDIANMike Keegan reported for the Guardian that some of the poorest families in the country have lost money following the collapse of Manchester credit union Streetcred.

Meanwhile investors in United Land Holdings the company whose stand at the 2006 ideal home exhibition was closed down by the office of fair trading have been told that they have no legal entitlement to land they thought they had bought.

The section also looked at the financial situation of couples that had either moved to the north of England from the south or to the south of the country from the north.

Tony Levene urged consumers to fight back against insurance companies and claim refunds for mis-sold PPI policies.