Standard Life cuts IPO range to 210-270p/shr

LONDON, June 15: UK insurer Standard Life has cut the price range for its initial public offering to 210-270 pence per share, from an April indicative trading range of 240-290 pence, sources familiar with the situation said on Thursday.

The range for the July listing will be released officially later on Thursday, when Standard Life publishes its prospectus.

The April range, which valued the company at up to 5.5 billion pounds (.1 billion), was set to reflect Standard Life's value at that time, had it been a quoted company.

Since then, the FTSE 100 index of blue chip shares has dropped some 9 percent and the DJ Stoxx index of European insurance shares has fallen over 11 percent.

Standard Life declined to comment.

The Edinburgh-based insurer, whose members voted last month to end 80 years as a mutual, has dismissed talk that falling markets could push it to delay the planned debut.

But sources familiar with the situation said last weekend that tough conditions would likely mean a price range some 10 percent below the range given in April, when a demutualisation prospectus was sent to members.

The Independent newspaper reported on Thursday that institutional investors had been sounded out about buying the shares for as little as 200 to 210 pence -- a cut of up to almost 17 percent on the lower end of the range.

Standard Life, which fought off an attempt to scrap its mutual status in 2000, shocked rivals and customers two years ago when it announced plans to go public, saying regulatory capital requirements and a declining market for with-profits products forced it to turn to the market for cash.

Money raised in the flotation will be used to expand its UK business and support capital adequacy.

REUTERS