Old Mutual confirms Skandia talks

British-South African financial services group Old Mutual is continuing takeover discussions with insurers Skandia, Old Mutual said in a press release on Monday.

The companies are discussing a bid which would value Skandia shares at 42 kronor apiece. Around 40 percent of the purchase price would be paid in cash, the rest in Old Mutual shares, the press release stated.

Skandia confirmed that it was continuing talks with Old Mutual.

“If and when a formal offer is presented, the board will evaluate this offer,” the company stated in a press release.

Old Mutual has this week been in contact with a number of Skandia’s largest shareholders to discuss the possibility of a bid.

TT/The Local