Nordic Capital abandons TietoEnator bid

Nordic Capital has walked away from its EUR1.08bn take over attempt of TietoEnator according to a press release dated May 26. However, the IT services group will continue to talk to other parties about its future, according to reports.

Cidron Services, Nordic Capital's holding company, announced that an affiliate close to the firm had sold 4.4% of the shares in TietoEnator on May 19. It was not confirmed whether Nordic Capital had acquired the stake or if it was sold to another buyer, but the market is interpreting that this is a sign that Nordic Capital is no longer interested in the deal.

On May 16 shareholders who control more than 10% of the shares in TietoEnator announced that they would not accept Nordic Capital's EUR1.1bn, or EUR15.5 per share, takeover offer.

The Swedish buyout firm contacted the board of TietoEnator in March after the company's share price hit a five-and-a-half-year low. However, after the bid was announced the stock rose significantly, indicating that the bid was insufficient.

There is also speculation that Blackstone will team up with Telenor and EDB Business Partner to make a "white-knight" bid. The consortium is rumoured to wish to buy TietoEnator and merge it with EDB, a Norwegian IT services group.

It has been said that that the "white knights" will launch a bid of EUR18.5 per share, 19% higher than Nordic Capital's; a price analysts believe to be fair.

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