Top life cover firm Friends Provident has instigated plans to guard the progress of its proposed merger with Resolution.

While Friends Provident needs the support of just half of its shareholders for the merger, Resolution requires a 75 per cent approval rating.

As rival firm Pearl holds a 16.5 per cent stake in Resolution, the deal could be blocked.

However, a recent announcement implied that the firms will perform a role-reversal, with Resolution needing just 50 per cent of shareholder support.

Friends Provident should have little difficulty in gaining the 75 per cent approval rating required under the changed arrangement, which was announced last week.

Resolution Chief Executive Mike Biggs told the Associated Press that changing the terms "allows the transaction to proceed without disruption, in the absence of any competing offer for Resolution."

The new agreement means that Hugh Osmond, head of Pearl, will be unable to block the Friends Provident offer and will have to launch his own bid for Resolution.

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