'Rights issue will fund purchase of life insurance business'

Resolution Life is planning the biggest rights issue in the City for four years to finance the £3.5bn (€5.1bn) purchase of Abbey National’s life insurance business, it was reported today.

The company, which specialises in buying up closed with-profits funds, is understood to want to raise £1.5bn (€2.2bn) from the rights issue, with the rest of cash needed for the deal coming from borrowing, according to The Mail On Sunday.