Phoenix, the 'zombie' life insurance group, is preparing to launch a takeover bid for Abbey Life that would accelerate industry consolidation amid sweeping regulatory changes.
Sky News has learnt that in recent days, Phoenix has hired investment bankers to advise on a bid for Abbey Life, which is owned by the troubled German lender Deutsche Bank.
Abbey Life has been reported to be worth as much as £3bn, although sources close to Phoenix insist its price tag is likely to be worth little more than a third of that sum.