Belfast Telegraph

Old Mutual shares soar amid talk of bank's multi-billion pound break-up

By Roger Baird

Shares in Old Mutual have jumped after the financial services giant said it was carrying out a review into the business that would "consider all options" amid reports it is planning a multi-billion pound break-up.

The FTSE 100 firm explained its new chief executive Bruce Hemphill would update investors on its strategic review at its full-year results on Friday.

It said: "We can confirm that all options for the strategic review are being considered but no decision has yet been made."

Shares leapt more than 8% in the group, which is valued at £9.5bn. Mr Hemphill replaced Julian Roberts at the South African-based bank in November, coming from African rival Standard Bank. Mr Roberts left after seven years at the helm.

Weekend reports said the group was looking at a sale of its wealth management arm, Old Mutual Wealth, valued at around £3bn.

The group, which was founded in South Africa in 1845, is made up of a wealth management arm, an international asset management business, an emerging markets division, and a majority stake in South African lender Nedbank.

Shore Capital analyst Eamonn Flanagan said: "We believe that such a disposal or demerger of Old Mutual Wealth is a distinct possibility."

Belfast Telegraph

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