Shares in Old Mutual soar on speculation over potential break-up
Shares in Old Mutual soared today on news that the company is “considering all options” after speculation that the group would be broken up into four businesses.
The savings and investment firm’s stock closed up 6.9 per cent at 192.1p.
Old Mutual said last week that it was pursuing a strategic review, as announced when new chief executive Bruce Hemphill, previously head of Standard Bank’s wealth and insurance division, joined last November.
“We can confirm that all options for the strategic review are being considered but no decision has yet been made,” the group said in a statement.
The Anglo-South African company added that it will provide an update on the strategic review this Friday when it announces its results for 2015.
Old Mutual comprises investment, insurance, banking and savings arms, and its market cap of £9bn is thought to be less than the separate value of each of its businesses.
The company recently agreed to sell Rogge Global Partners, a London-based fixed income asset management unit, to Allianz Global Investors.