UK Pensions - Telent takeover hits wall

News

Moves by London-based Pension Corporation (PC) to acquire Telent, the £400 million rump of the electronics group Marconi, have been thrown into doubt by the Pensions Regulator's dramatic appointment of three independent trustees - an action which led to a suspension of the takeover process.

The regulator's actions have been widely interpreted as being the result of trustee concern that PC's takeover would weaken the Telent scheme's covenant. Unlike insurance buyouts which require risk capital to