Agency Criticises Skandia Takeover
The Swedish Securities Council has criticised the way the South African-based insurer Old Mutual has conducted its bid to take over Swedish financial group Skandia.
The council, which sets guidelines for take-overs, says that in its “mini-prospectus” Old Mutual did not mention that its bid has been rejected by the Skandia board. In its report, which came in response to a complaint by the Swedish Shareholder’s Association, the council also criticised Old Mutual for claiming support from the Swedish state pension fund AP2. The fund initially approved of the deal, but later changed its mind.
Old Mutual originally said it would only act if it received 90 percent acceptance of its bid. But the company has not given up, even though it has reportedly fallen short of that goal. The offer is scheduled to close on November 21st.