Old Mutual, the South African financial services group, today revealed it is now in talks with Skandia regarding its informal Skr 43bn (€4.5bn) offer which the Nordic insurer reportedly rejected on Monday.

Old Mutual said in a statement, it was now considering "selected modifications" to the proposal in order to address concerns raised by the Skandia board. Under the proposed offer, the price would be 40% in cash, and 60% in Old Mutual shares.