Skandia, the largest insurance provider in Scandinavia, has rejected a takeover bid from South African company Old Mutual and advised its shareholders to do the same.

London-listed insurer Old Mutual, which has its origins in South Africa, has tabled a GBP3.3 billion bid for the Nordic rival. However, the official word from Skandia’s board is that the offer is not attractive for shareholders.

In response Old Mutual’s chief executive officer Jim Sutcliffe said that his company was going to continue with its offer, stating that it had the backing of around 60% of Skandia shareholders already.

Furthermore, it seems that not only a majority of shareholders disagree with the Nordic insurer’s official stance, as Skandia has admitted that there is a minority element within the boardroom that also in favour of the Old Mutual bid. Such is Mr Sutcliffe’s confidence that he suggested the deal could be completed by January.