Skandia Life’s board offered a vision of a promising future as an independent company as one of its prime reasons for rejecting Old Mutual’s 3.1bn takeover bid this morning.
Although Old Mutual’s offer has been judged as financially fair by independent assessor ABN Amro, Skandia Life says the combination of Old Mutual and Skandia lacks industrial logic. It says the overall synergies are limited and there is limited overlap between the companies.
Skandia also says the 70m in savings anticipated by Old Mutual if its bid were successful can largely be carried out by Skandia on its own.
But these comments are at direct odds to those made recently by Skandia Life UK managing director Nick Poyntz-Wright, who expressed grave reservations that Skandia could achieve the 65m cost cuts laid out in its business plan.