Sources close to Old Mutual, the South African insurer battling to take over Sweden's Skandia, today said it would walk away from its £3bn (€4.5bn) cash and shares offer if it did not achieve the necessary acceptance level of more than 50% of Skandia shares by tonight's midnight deadline.

A London spokesperson for Old Mutual told Financial News: "Today is decision day. We need to achieve a better than 50% level of acceptances or our offer will lapse."