HUNDREDS of Glasgow finance workers face an uncertain future after insurance giant Standard Life announced plans to launch a takeover bid for Resolution.

The Edinburgh-based insurer is on the verge of offering £4.5billion for Resolution, which employs around 400 staff in its asset management business in Glasgow city centre.

Reports today said a merger of the fund management arms of Standard Life and Resolution could result in significant redundancies.

More than 1500 staff in Resolution's life and pensions' division were transferred to Capita on August 1 under an outsourcing deal announced in June.

It's unclear if those staff will be affected by any future takeover.

Standard Life chairman Gerry Grimstone and Resolution counterpart Clive Cowdery are believed to have held several informal meetings recently, including one last week.

In its statement yesterday, the Edinburgh company said: "We are considering the possibility of a cash-and-shares offer for Resolution, which might possibly include disposals of certain assets.

"Any offer would only be made if the Standard Life board considered it to be in the best interests of Standard Life shareholders."

Staff in Glasgow are already concerned about the long-term impact of the Capita deal and reported earlier merger talks with Friends Provident.

The pensions unit in St Vincent Street faces heavy redundancies after the company outsourced 1550 staff to Capita.

Hundreds are expected to be switched to India over the next two years to cut costs.

It's understood that staff turnover and redeployment will mean that potential redundancies will be capped at 500.

Capita has come under fire in the past for its roles in various contracts, including the Student Loans company and the Criminal Records Bureau checking service.

It has several operations in Glasgow, including the BBC information call centre, and a property design service, which employ a total of about 600.