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Agence France-Presse English Wire via NewsEdge Corporation :

LONDON, Aug 30 (AFP) - British financial services group Old Mutual said Tuesday it had held discussions with Skandia over a potential bid for the Swedish insurer, worth around 43 billion Swedish kronor (4.6 billion euros, 5.6 billion dollars).

The British group said its proposed offer stood at 42 Swedish kronor per share. The price would be paid 40 percent in cash and 60 percent in Old Mutual shares, it added.

“Old Mutual confirms that it has held discussions with Skandia and a number of Skandia’s major shareholders during the course of the past week,” the group said in an official statement

The group “believes after discussions with these large shareholders that a majority of them would welcome such a proposal”. It was also mulling improvements to its proposal in order to address Skandia’s concerns.

“Old Mutual is keen to secure a recommendation from the board of Skandia and is considering selected modifications to the proposal to address issues raised by the board of Skandia.”

Stockholm-listed Skandia said Tuesday that discussions with Old Mutual were proceeding.

“If and when a formal offer is presented, the board will evaluate this offer. A further announcement will be made when necessary,” said Skandia.

A Swedish newspaper reported on Monday that Skandia’s board of directors had voted to reject any takeover bid by Old Mutual. The board had concluded that Old Mutual was not offering enough for their company, the Dagens Nyheter daily said.

afx-rfj/nh Britain-Sweden-insurance-takeover-company

AFP 300841 GMT 08 05

<<Agence France-Presse English Wire — 08/31/05>>