Skandia shareholders unite against Old Mutual

A minority of shareholders in Swedish savings firm Skandia who rejected Old Mutual's $6 billion bid are building a common platform…

A minority of shareholders in Swedish savings firm Skandia who rejected Old Mutual's $6 billion bid are building a common platform to protect their rights.

"We want to see Skandia independent still and if Skandia now has a strong majority owner, then we want the minority owners' interests respected," said Sten Trolle, chairman of the Swedish Shareholders Association. "There will be a statement, and I would think it will come today."

A number of Swedish institutions rejected Old Mutual's bid as too low. Skandia's board has also been at loggerheads with the South Africa-based company during the seven-month process.

Old Mutual extended its cash and share bid for the second time in December hoping to boost the 64.3 per cent support it received from Skandia shareholders. Among Swedish institutions who rejected the bid are the First, Second and Fourth state AP pension funds, Handelsbanken Funds, Robur Funds and Nordea Funds.

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According to daily Dagens Nyheter, the minority owners want a seat on Skandia's board. Trolle would not comment on shareholders' demands, nor which owners were behind the statement.

"There are many of us who feel the same way," he said. "You can see for yourself which institutions are against the bid, and of them, many are behind the coming statement."