Swedish insurer Skandia, which has been pursued by Old Mutual for four months as a takeover target, on Thursday gracefully bowed to the inevitable and called a shareholder meeting to facilitate the takeover.
The Anglo-South African insurer on Wednesday won approval from the Financial Services Authority for its bid, which removed a major potential obstacle to taking control of its Swedish rival.
In the extraordinary general meeting (EGM), to be called ”shortly”, Old Mutual is to be given an early opportunity to influence the composition of Skandia’s board, Skandia spokesperson Harry Vos said.
”The ownership picture has changed, so it is reasonable that the new owners get a chance to have a say with regards to the board,” Vos told Agence France-Presse’s financial newswire, AFX News.
Skandia called the meeting without any prompting from Old Mutual, he added.
Swedish regulators had authorised the acquisition in December.
Old Mutual said earlier in the week that investors holding a total of 69,7% of Skandia had accepted its hostile takeover bid.
The deadline for the €4,8-billion offer, aimed at creating the eighth-biggest insurance group in Europe, is next Monday.
Back in September last year, Old Mutual lodged its hostile offer for 43,60 kronor (€4,70) per Skandia share, valuing Skandia at 44,9-billion kronor.
The group’s own shareholders have overwhelmingly backed the bid, which is also aimed at reducing its dependence on South Africa. — Sapa-AFP