Promina’s largest shareholder, Perpetual Investments, has begun to wind back its exposure following the announcement of the merger agreement with Suncorp.

In a notice to the Australian Stock Exchange, the fund manager said it has offloaded almost 15 million shares in Promina, reducing its interest to 117.6 million shares, or 11.43% of the company.

At the same time, Perpetual acquired up to 28 million shares in Suncorp, or 5.1% of the company, to protect the value of its holding in Promina.

Shares in Promina have slipped more than 12% since hitting a 12-month peak of $7.30 on October 12. Suncorp shares fell more than 9% last week to $20.59.

Analysts say the Promina share price could slip below $6 if the Australian Competition and Consumer Commission rejects the merger proposal.