Old Mutual Launches $6.02B Bid for Skandia

Friday, September 2nd 2005, 10:19 am

By: News On 6

STOCKHOLM, Sweden (AP) _ South African financial services group Old Mutual PLC on Friday launched a 44.9 billion kronor ($6.02 billion) takeover bid for Swedish insurer Forsakrings AB Skandia.

The offer for Sweden's largest insurer amounts to 43.60 kronor ($5.85) per share and has to be approved by the Skandia board of directors before Sept. 23.

The bid was widely expected after Old Mutual, which is listed on the London exchange, announced in May that it was in merger talks with Skandia.

The deal would give Skandia shareholders 16.50 kronor ($2.21) in cash and 1.37 New Old Mutual shares for each Skandia share, Old Mutual said.

Skandia said it will evaluate the offer and issue a response no later than when Old Mutual publishes a prospectus on the offer.

``Skandia's opinion will be accompanied by a fairness opinion,'' the company said.