Old Mutual’s bitter feud with its fired CEO splits shareholders

All Weather Capital (Pty) Ltd is up for a settlement if it will end the feud. Allan Gray (Pty) Ltd, Old Mutual’s second-biggest investor, is against the idea.

JOHANNESBURG: Old Mutual Ltd shareholders are split on whether the South African insurer should pony up and settle with chief executive officer Peter Moyo or run the risk of a 250 million rand (US$16.5mil) damages claim.

All Weather Capital (Pty) Ltd is up for a settlement if it will end the feud. Allan Gray (Pty) Ltd, Old Mutual’s second-biggest investor, is against the idea. Sanlam Investment Management wants to wait and see how the court process unfolds, while Prudential Investment Managers (Pty) Ltd reckons a payout of that magnitude would be “egregious.”