Old Mutual CEO Jim Sutcliffe, who had been pursuing a stake in Skandia for months now, announced the hostile takeover yesterday. The deal, which gives Old Mutual a 62.5% stake in Skandia, is considered by many a feather in Sutcliffe's cap. He's been trying to refocus the company going forward after four years of cost-cutting, asset sales and management shake-ups, the International Herald Tribune reported.
"We are focused very much on delivering the benefit we think this combination offers," Sutcliffe said. "The challenge is very much to bring the company together behind that goal."
It's been speculated that the assumption of Skandia, which gets about half of its revenue from
"It will be a positive for [Old Mutual] after a lot of time and effort and disruption," said Johnny Vo, an analyst at Fox-Pitt Kelton in
It's been a rocky ride in recent years for Skandia. It's underwent management shake-ups over bonuses paid to executives and its American unit was caught up in the mutual fund scandal for improper trading.
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