Andra AP-fonden, the Swedish pension fund also known as AP2, has sold its stake in Skandia, enabling the latter's new owner Old Mutual to reinforce its control of the life and savings player.

Reports emerging from Sweden suggest that AP2 has opted to give up its 3.5% stake in Skandia because it has no faith in Old Mutual’s management. The reports come shortly after initial news suggesting that AP2 would be a key player in resisting Old Mutual’s E5 billion hostile takeover bid.

According to Reuters, AP2 feels that Old Mutual did not take the interests of minority shareholders into account. The Swedish pension fund’s head of corporate governance Carl Rosen told the news agency that it had not yet decided whether to sell the stake on the open market or offer it to Old Mutual, thereby effectively accepting the takeover bid.

Old Mutual currently owns 72% of Skandia, but possession of a 75% controlling stake would give it significant tax benefits.