Special Swede-ing

12 January 2006 By Chris Hughes

As many as 30% of the Swedish insurer s shareholders appear to be holding out against Old Mutual s E5bn hostile takeover. But their demand for board seats goes too far. They already enjoy protection, and Old Mutual has much to lose by disadvantaging them.

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Old Mutual's E5bn hostile takeover offer for Skandia, the Swedish insurer, closes at midnight on Thursday, January 12.

One of Sweden's state pension funds, AP2, has demanded that minority shareholders nominate three board members, and that transactions between Skandia and its parent should require the support of investors holding 90% of the shares.

Old Mutual, which is listed in Johannesburg and London, said last month that it had received acceptances from investors in the Swedish insurer owning 63% of the shares.

Skandia said this week that nonSwedish shareholders held 72% of its stock.

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