Old Mutual has reassured investors about its financial strength following its decision to place shares worth £36m (€52.5m) to meet earn-out commitments to asset management executives Harold Baxter and Gary Pilgrim.

Baxter and Pilgrim are co-heads of US fund management firm Pilgrim Baxter, which Old Mutual acquired through its purchase of United Asset Management in June 2000. Old Mutual went on to strike a deal with Baxter and Pilgrim through which their entitlements to revenue streams produced by the firm were to be bought out through a series of staged payments. The £36m represents a second payment, and a third one has yet to fall due.