Sinking Feeling About Flotation Standard Life Plan Is Not in Scotland's Best Interests
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Summary
The line between recession and growth can be fine. The Scottish economy has managed to avoid recession, not by surging forward but by keeping marginally ahead of official downturn. Economic prospects would be much bleaker if it were not for the financial services sector, providing everything from banking to life assurance for savers. With manufacturing in the doldrums, financial services have turned out to be the saviour. Without them, recession would probably be a reality. Edinburgh is the sector's heartland but Glasgow has become a serious bidder for a significant slice of the action. Glasgow's pitch has, unfortunately, suffered major damage with Abbey National's decision to take its (pounds) 28bn fund management business out of the city (and Scotland). This could result in the loss of many well-paid, highly-qualified jobs.
The outlook could be bleaker after Standard Life's announcement that it will consider a stock market flotation to help it out of its troubles. If that happens, Europe's biggest mutual insurance business would find itself embracing a corporate strategy it has consistently rejected. Suddenly, demutualisation, the scourge of member-owned businesses like Standard Life, is not such a bad thing. But it would be if Standard Life did opt to go to the stock market and were bought over before, during or after flotation. That happened to Scottish Amicable, another big hitter whose HQ was removed from this country by Prudential, the new owner.See the full content of this document
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Sinking Feeling About Flotation Standard Life Plan Is Not in Scotland's Best Interests
The sector operates in a global market-place and must prove its worth by winning...
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