Old Mutual is likely to have reached the key 75% level of acceptances for Skandia when its offer for the Swedish company closes tonight.

On Wednesday, the Second Swedish National Pension Fund (AP2), which owns 3,5% of Skandia, said it would sell its stake as it did not want to remain invested in the company once it was under Old Mutual's control.

Other minorities were also expected to accede to the offer before it closed for final acceptances at midnight, analysts said.

While AP2 had not decided whether to tender its shares under Old Mutual's offer or sell them on the open market, one analyst said the shares would probably end up in Old Mutual's hands anyway.

By last month Old Mutual had received acceptances from shareholders representing 72,3% of Skandia's shares.

AP2 chief investment officer Petter Odhnoff said as the leading institution in the minority group, a number of small shareholders were taking their lead from AP2.

The Swedish Shareholders Association, representing retail investors, had also recommended that investors accept Old Mutual's offer.

"I think very few shareholders are offering resistance now," Rajay Ambekar, portfolio manager at African Harvest Fund Managers said. "It (the AP2 stake) would probably fall into hands that are for the deal, in which case they would tender the shares to Old Mutual."

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge