STOCKHOLM (Reuters) - U.S. investment firm Paulson confirmed on Monday that it had 5.12 percent of the shares and voting rights in Skandia and that it supported a $5.3 billion bid for the Swedish company by Old Mutual.

A Swedish newspaper reported the size of the stake over the weekend. The 5.12 percent holding makes Paulson one of the biggest shareholders in Skandia alongside Fidelity.

"We believe the combination of Skandia and Old Mutual will create a global insurance leader and will create more value for Skandia shareholders in both the short and the long term," said John Paulson, president of Paulson & Co. Inc., in a statement.

Paulson said the bid, which it said currently valued Skandia at 43.50 crowns a share, represented a premium to where the Swedish group's shares would trade without the offer. Skandia closed at 42 crowns on Friday.

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