The chairperson of Skandia Insurance, Bernt Magnusson, has decided to resign from the company’s board due to differences of opinion with fellow board members about Old Mutual’s bid for the firm, AFX reported from Stockholm on Friday.
The board of the Swedish insurer was split over the R38-billion bid from Old Mutual, with Magnusson being one of the three board members in favour of the offer. Lennart Jeansson, one of the eight board members who rejected the bid, has been appointed as the new chairperson.
“I do not consider it right to continue to lead the work of the board when there are different opinions on an important and central issue,” Magnusson said in a statement.
“Now that the board has decided to reject the offer for the company, it is natural and in Skandia’s best interests that I hand over the chairman’s gavel to someone who shares the opinion of the majority within the board, and can therefore fully represent the company’s position.
“As a consequence, I also consider it appropriate to leave the board,” Magnusson said.
The chairperson’s resignation further raises the odds against the success of Old Mutual’s takeover prospects. So far, Skandia shareholders representing just more than 10% of the company’s shares in issue have officially rejected the bid.
Old Mutual, however, continues to put a positive face on the prospects of the deal going through. It has not lifted its self-imposed requirement for a 90% margin of Skandia shareholder acceptance, but could do so soon, media reports have speculated. — I-Net Bridge