SWEDEN - The e16bn Swedish AP2 fund has set out the ground rules to protect the rights of minority shareholders while Old Mutual attempt a joint ownership of Skandia Insurance Company (Skandia).
In late September 2005, All three AP funds with holdings in insurance company Skandia rejected Old Mutual’s bid for the firm.
“If the amount of the current offer is not increased, the proportion of minority shareholders in Skandia will be significant,” the new statement stressed.
According to AP2 the ground rules are there to ensure clients of both Skandia and Skandia Liv continue to “retain full confidence in these two companies and to enable minority shareholders to participate positively in Skandia’s ongoing development.”
The fund stipulated three primary requirements:
- That no less than three of the eight members of the board of directors elected by the annual general meeting shall be nominated by the minority shareholders and approved by the principal owner.
- Shareholders shall be provided with complete data on all significant future transactions between Old Mutual and Skandia; decision shall be subject to approval by 90% of the votes at a general meeting.
- Shareholders shall be provided with complete data on all significant future structural changes in Skandia; decisions shall be subject to approval by 90% of the votes at a general meeting.
CIO of AP2, Peter Odhnoff said: “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.
According to a spokesman at AP2, the September bid was rejected by 7 large Swedish pension funds, one American Pension Fund and also the Swedish Shareholders Association. “In this situation we are co-ordinating the minority shareholders of Skandia to protect minority rights,” he concluded.
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