Old Mutual Lowers Takeover Target
The South African insurance company Old Mutual has slashed its target level of stockholder support for its takeover bid for the Swedish financial services group Skandia.
Old Mutual had previously said it needed pledges of 90 percent of Skandia shares before it would go ahead with its bid. But, following rejection of the offer by the Skandia board and many institutional stockholders, on Thursday Old Mutual reduced its target to just 50 percent.
The company says the offer will not be extended beyond December 16th, if the new target is not met. The takeover bid has been criticised in Sweden because of Old Mutual’s close relationship with the Mugabe regime in Zimbabwe.