A number of Swedish institutional shareholders have rejected Old Mutual's bid offer for Skandia, citing too low a price and uncertainty over the level of benefits the proposed business model would bring.
None of the shareholders have specifically stated they would reject the offer even if offered a higher price for each Skandia share but such a change to the offer has not yet been made by OM, as the firm has stated it will push ahead with its bid regardless of the recommendation of Skandia's board.
That board is itself split on the SEK44.9bn (£3.3bn) deal, as its statement of 23 September shows.
Rejections officially announced by shareholders thus far include:
According to Bloomberg data based on last filed reports detailing portfolio holdings, the biggest shareholders in Skandia include Finnish bank Sampo, Fidelity, Swedish investor Cevian Capital, as well as the aforementioned Robur and national pension funds. Funds operated by other Swedish banks and insurance companies also hold significant stakes.
Jim Sutcliffe, chief executive at OM, has said in a statement on 23 September, the same day Skandia’s board rejected the bid offer, that OM “met with holders of more than 60% of Skandia's shares in recent weeks and received positive indications on the merits of our proposal from a vast majority of them.”
Skandia’s board noted in its response and estimate of some 116,000 shareholders split roughly 50:50 between Sweden and an unknown number of other countries – including some 100,000 small shareholders.
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