A number of Swedish institutions and the current Skandia board have rejected Old Mutual’s 6 billion dollar bid as too low. But the South African company says it has received pledges from a majority of shareholders.
The state AP2 pension fund says it is coordinating the activities of large nay-sayers, and unless the bid is raised many shareholders will continue to hold out against a deal. In order to protect the interests of minority shareholders, the fund has demanded that no less than three of the eight Skandia board members should be nominated by minority owners.
It also demanded that any structural changes to the company should be approved by a 90 percent majority at a general meeting.