Old Mutual’s Hostile Takeover of Skandia
OLD MUTUAL’S BID FOR SKANDIA Old Mutual’s Friday evening press conference in Stockholm on 2 September marked a turning point for a Skandia that, since the spring of 2003, had been subject to various takeover speculations. The same day, a public binding bid was presented to Old Mutual and Skandia shareholders as well as to the general public in Sweden, the UK and South Africa. This procedure ensured that all were given access to the same official documentation at the same time (the writings and handouts from 2 September 2005). On the previous Monday afternoon (29 August 2005), Old Mutual had confirmed that, for some time, it had held discussions with Skandia and a number of the company’s major shareholders concerning a possible offer where Skandia was valued at approximately 42 SEK per share. When the bid was formally announced, Old Mutual presented a value of 43.6 SEK per share: the difference reflecting a rise in Old Mutual’s share price during the week. On that Friday, the Skandia share was trading at 41.5 SEK. It continued to lose ground by a few öre1 each day. By 15 September, Skandia was trading at 40 SEK. This was far from the expectations marketed by Skandia Director Christer Gardell, and also far from the price indications that appeared when the Old Mutual bid speculations were confirmed on 13 May 2005. That day, Skandia rose to 42 SEK.2 Four months later, the Stockholm stock market had risen by 12 per cent and the Morgan...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.