The search for a new chairman for Skandia, the scandal-hit Swedish financial services firm, descended into chaos on Tuesday as a row broke out among some of its largest shareholders over who would make the most suitable candidate.

Marcus Storch, a Swedish boardroom and business veteran, was tipped as the favourite for the post but Handelsbanken Fonder, the fund arm of the Swedish bank and one of the largest shareholders in Skandia, has reportedly opposed his appointment.