FINLAND - TietoEnator owners block Nordic Capital bid

The buyout house needs 90% of shareholders accepting the bid to force out minority shareholders and it is therefore expected that the takeover attempt will fail. Nordic Capital has extended the acceptance period of the offer to May 23rd.

The Swedish buyout firm contacted the board of TietoEnator in March after the company’s share price hit a 5 ½ year low. However, after the bid was announced the stock rose significantly, indicating that the buyout house might have to increase the bid to receive acceptance in the market.

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 EUR 18.5, 23% higher than Nordic Capital’s; a price analysts believe to be fair.

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