POLICYHOLDERS with Scottish Amicable were confused by being thrown into a takeover tussle following Abbey National's shock approach for the mutual life insurer. Abbey yesterday offered an immediate £400 million sterling cash or shares boost if the deal went through, with a further £700 million to £1 billion to come later.

ScotAm, which has announced plans to float on the stock market, rejected the approach, saying the firm had not been put up for sale.