A deal would be Standard Life boss Sandy Crombie's legacy

The proposed cash-and-share deal is worth about 714p per Resolution share, less than what analysts had expected.

The deadline to respond to the offer was postponed from Thursday until Friday after requests from Resolution.

The deal would end the planned merger between Resolution and Friends Provident, announced in July.

The announcement comes a day after Friends Provident and Resolution promised to return about �2bn to investors, in a move aimed at encouraging shareholders to back the merger in a vote scheduled for 5 November.

The original deadline had been 17h00 BST but regulators accepted Resolution's requests to push the deadline until a day later.

Bidding frenzy

Some analysts say Resolution is committed to the tie-up with Friends, which sells life protection, income protection, pensions and investment products, and only a compelling offer above 740p a share could make the board turn their back on the planned all-share merger.

Resolution is the market leader in closed life funds, which generates a healthy income for the firm.

Suitors have been eyeing up the Scottish company since it laid out plans to merge with Friends three months ago.

Analysts say the firm is attractive because of its cash-rich balance sheet, mortgage-related life protection business through subsidiary Scottish Provident and retail distribution agreement with Abbey.