AP4 rejects Old Mutual's offer for Skandia

The Fourth National Swedish Pension Fund’s holding in Skandia is long-term. The Fund rejects Old Mutual’s offer for Skandia. The reasons given by Skandia’s Board of Directors are shared fully by the Fund

 In the Fund’s opinion, some key points deserve special mention.

  • Skandia’s Board has rejected the offer which makes this a hostile bid.
  • Any structural deal would be far too early for Skandia, since over a long period both Board and Management have been forced to focus on various crises instead of concentrating on the core business.
  • The stand-alone alternative has been set out by the majority of Skandia’s Board in a credible manner.
  • The offer for Skandia lacks a normal takeover premium.
  • Most of the purchase price for Skandia will be paid in the form of newly issued shares in Old Mutual. Since the major part of that company’s cash flow and profits are generated in South Africa, the currency risk and political risk inherent in the offer appear to be abnormally high.


For further information, please contact:
President Thomas Halvorsen +46 8 787 75 50
Vice President Björn Franzon +46 70 603 45 52