Old Mutual not reliant on Skandia board

British-listed insurer Old Mutual said on Thursday that it would maintain its offer for rival Skandia should the Swedish group's board fails to recommend the bid to shareholders.

“Old Mutual remains convinced that the benefits and industrial logic of the offer are compelling and continues to seek a favourable recommendation from the board of Skandia,” Old Mutual said in a statement to the London Stock Exchange.

“In accordance with what has already been stated by the Swedish Takeover Panel… Old Mutual would not seek to withdraw the offer on the basis of the board of Skandia failing to make such a recommendation,” it added.

Old Mutual added that it welcomed confirmation by the Skandia board on Thursday that it intended to respond to its peer’s offer on September 23rd.

Old Mutual had on September 2 lodged a cash-and-share takeover bid for Skandia to create one of the Europe’s top 10 insurance giants.

The company said it was offering 43.60 kronor per Skandia share, valuing Skandia at 44.9 billion kronor.

If successful, the operation would create a combined Old Mutual/Skandia group worth 7.9 billion pounds with 192 billion pounds under management, Old Mutual had said.