Skandia minority puts forward demands

The Second Swedish National Pension Fund (AP2), which holds 3.5% of the shares in Skandia Insurance Co Ltd, said Old Mutual PLC must allow three of the eight members of the Skandia board to be elected at the forthcoming AGM be nominated by the minority shareholders.

The AP2 state pension fund, which opposes Old Mutual’s bid for Skandia, said it is coordinating the activities of large minority shareholders during negotiations with Old Mutual to ensure they can continue to “contribute positively” to Skandia’s development, and so that clients of Skandia and Skandia Liv can retain full confidence in these two companies.

It suggested the group will continue to reject the offer unless Old Mutual raises it.

“If the amount of the current offer is not increased, the proportion of minority shareholders in Skandia will be significant,” said AP2.

AP2 said it is also demanding shareholders be provided with complete data on all significant future changes in Skandia, and that decisions relating to them will be subject to the approval of 90% of the votes at a general meeting.

“In the current situation, it is important to all minority shareholders, foreign and domestic institutional investors and small shareholders that the ground rules are clearly established,” said AP2’s chief investment officer, Petter Odhnoff.