Although divided on the question, the board late on Sunday concluded that Old Mutual was not offering enough for their company, the paper said.
It was unclear whether Old Mutual would lodge a bid anyway, hoping to win control of Skandia via a hostile takeover operation, it said.
Old Mutual has said since May that it was in “preliminary discussions” with Skandia concerning a potential transaction as part of a long-standing strategy of building a diversifed international business.
The value of any bid has not been made public, but according to Swedish newspaper reports Old Mutual had told its largest shareholders that it has prepared a bid worth between 42 and 44 kronor per share for Skandia.
Old Mutual, which does most of its business in South Africa, is headquartered in London where its shares are listed.