The Takeover Panel has taken the highly unusual step of giving Pension Corporation the option to withdraw from its agreed £400m bid for Telent, a communications services company, after the Pensions Regulator replaced the trustees to the target’s pension scheme with three of its own choice, who cannot be removed for six months.

The replacement of trustees could be an obstacle to restructuring the pension scheme – which includes £500m in an escrow account – in a way that allows Pension Corporation to benefit.