Talks Regarding Sale Of Skandias U.S. Unit Reported
Reports surfaced last week that part or all of American Skandia, Shelton, Conn., could be sold by its parent company, Skandia Insurance Company Ltd., Stockholm, Sweden.
The U.S. unit has recently reported dwindling profits due to plummeting stock values.
The New York Times and The Wall Street Journal, citing unnamed sources, said the Swedish company is seeking “strategic alternatives,” including a possible sale of part or all of American Skandia. However, a deal is not imminent, the reports said.
Skandia would prefer to arrange a joint venture or find a suitable investor so that it could keep an interest in its American unit, according to these sources.
American Skandia could fetch as much as $1 billion, said a source cited by The Times.