GE Capital considers making

GE Capital considers making better offer for Equitable LifeGE Capital is considering making an improved offer for Equitable Life in the next few days, despite Halifax confirming it had concluded a deal worth up to £1 billion sterling (€1.57 billion) with the troubled mutual life assurer.

"We are considering our position," GE said. The financial services arm of US conglomerate General Electric is said to be working on an increased offer which it could submit in the next few days.

For GE to succeed it will have to overcome the Financial Services Authority's (FSA) enthusiastic endorsing of the Halifax deal. The FSA, the principal City regulator, is anxious to achieve a speedy resolution for Equitable's one million-plus policyholders.

Halifax's proposal will see it first pay £500 million to acquire Equitable's fund management arm, computer systems and 450-strong salesforce.

The next £250 million will be conditional on the mutual reaching an agreement to cap the liabilities of its 190,000 guaranteed annuity policies which may prove difficult. Any deal must be endorsed by 75 per cent of policyholders by value.

The final £250 million is dependent upon the mutual's sales force rebranded as Halifax Equitable meeting new business targets in 2003 and 2004.

Policyholders have expressed concern about the targets.

Under the deal, policyholders with guaranteed annuities will get a one-off increase in policy values in exchange for their guarantees. This will increase the policy values of guaranteed policyholders by 20 per cent.