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Posts Tagged ‘Norway’

The EU Files: USA See Norways Military Proposal As Ridiculous

In Health and Environment, International Econnomic Politics, Law & Regulations, Technology, Views, commentaries and opinions on 16.01.11 at 02:11

First we find that the US Embassy in Oslo for years have been requiting retired police officers to spy on Norwegian citizens, without anyone knowing anything about it, and now we find that the former ambassador to Norway, Benson Whitney, more or less have buried the Norwegian proposals for a future military strategy in the Nordic region. Mr. Whitney right out ridiculed the plans for a renewed Nordic military strategy put forward by former Norwegian foreign minister, Thorvald Stoltenberg, newly leaked documents by WikiLeaks show. The Norwegians are generally very tolerant people, there is a limit.

“The proposals are dreams in polar fog, but may be useful for keeping an eye on polar bears and Russians-”

Benson Whitney


The US ambassadors irrelevant remarks came after the 74-year-old Thorvald Stoltenberg in 2009 put forward 13 ideas for military co-operation. including a NATO-style mutual defense pact among the Nordic countries. Mr. Stoltenberg, highly respected among international politicians, spent several years working on the proposals. But as a result of Mr. Whitney’s mockery, the leaders of  the Nordic and Baltic countries has very little to debate when the meet with the UK prime minister next week to discuss the topic.


Of the 13 proposals, the US ambassador predicted the Nordic mutual defense plan as the most unlikely.

Thorvald Stoltenberg

“Officials including the PM’s foreign policy adviser and the foreign ministry’s political director have privately indicated to us that there is little or no interest in a Nordic solidarity declaration within the Government of Norway,” he reportedly said.

(Despite the fact the Norwegian prime minister, Jens Stoltenberg, is Thorvald Stoltenberg’s son.)

On joint surveillance flights in Icelandic airspace, he added: “Surprisingly, Norwegian officials have been very critical of this proposal … expressing strong dislike for this item.”

The former US ambassador seem to know a helluva lot more about what’s going on inside the Norwegian government than most Norwegians do!

On diplomatic and consular co-operation, Mr Whitney said: “Co-operation between foreign services is much more difficult and will likely be limited to countries where none of the Nordics have representation now.”

Benson Whitney

However, in his concluding remarks, Whitney said: “Joint Nordic transport capabilities, medical teams, amphibious units, a stabilization task force and maritime awareness could be important contributions to UN, NATO or US missions.”

(Well, I assume it was the Norwegian military who provided him with transport back to the USA…)

LINK_1_ Oslo

The Swedish Connection

A separate cable, also release Thursday, illustrate the close connection between the US and Sweden at the time WikiLeaks-founder Julian Assange was arrested in Stockholm on rape charges.

In the cable, dated July 2009, Swedish diplomat Jonas Wendel told the US charge d’affaires in Stockholm, Robert J. Silverman, about sensitive issues in an upcoming EU foreign ministers meeting.

Mr Wendel spoke in detail about the position of fellow US ally Britain on Iran sanctions, but maintained some discretion.

Speaking of whether or not the EU will use tough language against Russia, he said the move is being opposed by the “usual members,” but did not name them.

LINK 2_Stockholm

The Wendel dispatch comes after Swedish diplomat Johan Frisell in 2008, in a previously leaked US cable, dished up painful details on internal EU divisions on the Georgia-Russia war.

This revelation raised some eyebrows among some senior EU officials because internal EU debates are supposed to be kept secret.

Mr. Wendel indicated that EU countries are capable of sticking together in times of crisis.

Today we may see the ironic in these statements.

LINK 3_Russia

No Knowledge

Commenting on whether EU states might withdraw their ambassadors from Iran after it detained a British embassy worker, the cable said: “Solidarity among EU members is strong, and if the discussion is emotionally charged, then the ministers might agree to a withdrawal.”

And Swedish foreign minister Carl Bildt, in a dispatch dated December 2009 and published in December 2010, gave a partly upbeat opinion on the newly-minted EU foreign affairs chief Catherine Ashton.

Mr Bildt said that he “knew and liked” Ms Ashton. He describe her as a “street fighter” with a disciplined mind for bureaucratic battles, competent and intelligent, but says she has “no foreign affairs knowledge.”

Julian Assange

LINK 4. Brussels

This is even more entertaining than the British tabloids. Thank you, Mr. Assange!

Blogger Templates

h/t: EUobserver.com

About the links:

Since I’m not sure how long the cables will be online, I’ve made transcripts of the text files and uploaded them a few other places.

At the moment, you’ll find them here:

Link 1. Oslo Cable

Link 2. Stockholm Cable

Link 3. Russian Cable

Link 5. Brussels Cable

Read other EU files here.

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Hackers Attack Norwegian Government – Again

In Health and Environment, International Econnomic Politics, Law & Regulations, National Economic Politics, Technology on 26.11.10 at 15:35

This week the Norwegian government have been under a severe hacker attack. The National Security authorities have raised the threat level to 3 – the highest since the Stuxnet attack against Norwegian oil installations and other crucial systems in June this year.

“The police are aware of vulnerabilities in PDF readers that’s  been exploited for hacking.”

Espen Strai

Norwegian Security Authorities

The Norwegian governments building in Oslo have this week been hit by the most serious hacker attack so far this year, Norwegian newspaper Aftenposten reports. This attack has been possible because the ministers and their staff still hasn’t updated their PDF software.

According to the norwegian newspaper Aftenposten, National Security Authorities discovered a flow of infected PDF files coming in through the governments email system, passing the firewall without any trouble.

The serious attack was kept a secret until the newspaper got hold of an internal note to the security personnel at the government building, warning against the hole in their security systems.

The National Security authorities (NSM) are still working on the case, trying to patch the holes and see if they can trace the perpetrators.

The attacks this week have led the NSM to raise the national threat level to level 3 – the highest since the Norwegian oil companies, utilities and other vital social structures were attacked by the dangerous Stuxnet worm earlier this summer.

NSM and the Norwegian government has kept this last attack a secret from the public. The reason is that they’re still working to resolve the problem,  and investigate who is behind, whether they are hackers, computer criminals or foreign intelligence, aftenposten.no writes.

Hackers and computer criminals have discovered that the ministers and their staff have done a classic amateur mistake – they have failed to update the computer program Adobe Reader, which is used to read PDF files.

That makes the government buildings an easy and tempting target.

Using a computer virus, a so-called “Trojan,” which uses known vulnerabilities in Adobe, the hackers tried to install software that would give them full access to the computers.

Every day more than 5 million emails passes through the governments firewalls that’s supposed to protect highly sensitive data, government notes and classified information, which can cause both individuals and Norwegian security concerns very much damage.

The Office of the Auditor General of Norway has previously criticized prime minister Jens Stoltenberg and his government for the very poor data security and, among other things, using old software.

Ministry of Government Administration and Church Secretary Rigmor Aasrud says that the government has implemented several measures.

“We can not comment on the different security ratings by NSM. However, we’re continuously assessing the measures that are necessary. We expect people to be vigilant and careful with what you do,” says communications manager Frode Jacobsen Minister of Government Administration and Reform.

“The police are aware of vulnerabilities in PDF readers have been exploited for hacking. We follow the situation around this carefully,” says communications director Espen Strai at the National Police Computing and Material Service.

Norwegian police have now taken steps to update the governments applications so that most attacks are stopped, aftenposten.no is told.

Related by The Swapper:

Hackers Attact Norway’s Peace Prize Institute

In Health and Environment, International Econnomic Politics, Law & Regulations, National Economic Politics, Philosophy, Technology on 14.11.10 at 18:52

About 300 private individuals, companies and organizations may be the victims of computer espionage after visiting the  webpages of the Nobel Committee and the Nobel Institute in Oslo, Norway, on October 26 and 27. The visitors got spyware installed that gave outsiders full access to their computers. This week, the Nobel Institute reported the attack to the local police in Oslo.

“It can be anything from the fact that someone wants to give China a bad reputation to the Chinese themselves.”

Frank Trail


The espionage via the Nobel Institute have been going on for a much longer period, and is much more extensive than previously known. the Norwegian newspaper Aftenposten writes on their website. According to the National Security Agency it took eleven days from the site was hacked to the highly sophisticated break-in was discovered.

The cyber attack was discovered by Telenor Security Operation Center (TSOC) on October 25 after several customers of the telecom company had reported hacker attacks.

TSOC then notified the National Security Agency and the Nobel Institute.

“It is hardly economic motives behind this attack, and the people behind it obviously has a lot of money. To carry out such an attack, they have to exploit a weakness in software only available on the illicit market, and used it against the Norwegian Nobel Institute. This is a very expensive methods and could be used for other types of economic cyber crimes  – instead of attacking Nobel Institute,” head of TSOC, Frank Trail. says.

All traces end up in a computer at a university in Taiwan that anyone has access to. This computer was the command center that controlled the attack, and a huge bulk of information was downloaded.

However, it’s practically impossible to find out who controlled the public computer in Taiwan.

“It can be anyone; from someone who wants to give China a bad reputation, to the Chinese themselves. We now have extra focus on this to see if the attacks repeats itself towards peace prize ceremony and the Nobel Prize Concert.”

Mission Impossible

“Between Monday afternoon and Tuesday morning, I estimate that we may have had up to 300 visitors using Firefox browser version  3.5 and 3.16,” librarian and IT Manager Bjørn H. Vang at the Nobel Institute says.

“We have no way to track who they are. What is most regrettable about the matter, is that people who have visited our website may have been harmed,” Vang adds.

Both the National Security Agency of Norway and the national criminal police are now investigating the data logs at the Nobel Institute.

“Internal Affairs has already made several technical studies. These are very complicated matters, especially if we end up in a server abroad. If it leads us to other countries, it will require a lot of resources and we’ll have to  ask whether or NCIS Økokrim (The National Authority for Investigation and Prosecution of Economic and Environmental Crime) will take over the case. Even if we find out who is behind, so there are not many countries who are willing to disclose this information,” police chief, and head of the finance and corruption group, in Oslo, Rune Skjol, says.

Related by The Swapper:

Illegal To Outsmart A Trading Robot, Expert Says

In Financial Markets, International Econnomic Politics, National Economic Politics, Views, commentaries and opinions on 19.08.10 at 19:36

Lecturer Hugo Matre at the  University of Bergen in Norway, who is an expert on exchange and securities laws, believes the two Norwegian day traders that outsmarted the Timber Hill trading robot, probably will be convicted for violation of the prohibition against price manipulation.

“The most important in a practical context here, is that the prohibition of market manipulation includes actual transactions,and  if these are likely to influence the market.”

Hugo Matre


“The general rule is that it is illegal to act in a manner that gives false or misleading signals about supply and demand in the market. The ban includes both manipulative transactions and orders, as well as dissemination of false and misleading information,” the law expert says.

One of the accused, Svend Egil Larsen, makes the following comment:

“I have not entered any orders into any order book – only made trades on the prices that was set by the robot. You can not say that I have given false or misleading signals to the market. In any case its the robot itself that gives a false picture of supply and demand in the market by moving the price when you buy only 100 shares, even though it offers several thousand,” the day trader Svend Egil Larsen (38) replies to DN.no.

Who’s Fooling Who?

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“The most important in a practical context here, is that the prohibition of market manipulation includes actual transactions,and  if these are likely to influence the market in a way that’s covered by the ban,” Matre explains.

Some market participants have argued that what the two defendants have done, is nothing more than what the trading robots does:

“The defendant have fooled one single robot, while all the other robots are trying to fool every other market participant,” one says.

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Related by the Econotwist:

Update: Day Traders Crack The Timber Hill Trading System

Oslo Stock Exchange Comments On Market Manipulation

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Oslo Stock Exchange Comments On Market Manipulation

In Financial Markets, International Econnomic Politics, National Economic Politics, Views, commentaries and opinions on 18.08.10 at 18:04

There’s an old saying: “Forever owned is only a bad reputation.” Unfortunately the Oslo Stock Exchange has one, and have been trying to correct for years. However, the OSE statistics shows that the old saying might be true, as the number of reported cases of market manipulation and illegal insider trading seem to remain stable.

“We have no reason to suspect that there is price manipulation in a “tip of an iceberg” scale at the Oslo Stock Exchange.”

Guro Steine

Oslo Stock Exchange

The Oslo Stock Exchange’s label as an “insiders market” goes back many years to the time when computers and robots only was seen in Hollywood movies, and the main players in the Norwegian stock market could be counted on your fingers. The OSE has put substantial effort into getting rid of this rather unflattering image. However, the number of reported suspicions of illegal insider trading per year is the same today as it was five years ago.

Foreign investors have also been wary of the fact that the Norwegian government owns about one third of the total value of companies listed at the exchange, and for many years they added a  so-called “state-discount” when trading in Norway.

Bente Landsnes

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According to managing director Bente Landsnes, the “state-discount” is gone, but several foreign investors I’ve been talking to over the last couple of years are still concerned about the few dominating institutional players operating the exchange.

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If their concerns are justified, I really can’t say.

However, the statistics for reported incidents of suspected illegal insider trading and market manipulation seems quite stable – except for a peak in 2007.

Here’s the figures for the last five years:

2005.

Reported insider trading: 27

Reported market manipulations: 17

2006.

Reported insider trading: 24

Reported market manipulations: 15

2007.

Reported insider trading: 40

Reported market manipulations: 9

2008.

Reported insider trading: 23

Reported market manipulations: 14

2009.

Reported insider trading: 28

Reported market manipulations: 16

2010. (Q2).

Reported insider trading: 12

Reported market manipulations: 3

(http://www.oslobors.no/Oslo-Boers/Handel/Markedsovervaaking)

Time Are A Changing

Yesterday’s startling news about the two day traders who managed to figure out the pattern of one of the worlds largest computer trading systems, made a couple of hundred thousand kroner by raising or lowering the bid/ask price in a few extremely low liquid shares,  just like the big institutional high frequency traders does, and now risk up to six years in prison, raised anger amongst Norwegian private investors.

As one said: “How the hell can we earn money intraday if we are not smarter than then those f***ing robots? They’re everywhere!”

See: Update: Day Traders Crack The Timber Hill Trading System

Can’t Blame The Robots

“We can’t comment on a matter which is now handled by police, but we can say something general about market manipulation,” communication manager Guro Steine says in a email to the Econotwist’s Blog:

Guro Steine

“New and faster computer systems allow for increased use of technology in the securities trade. This happens now in all modern market places and exchanges in the world. It also results in different trading patterns, which immediately may seem strange to us. We who are engaged in market places use a lot of time and effort to understand this even better than we do today. We understand that it is frustrating for such a day trader to “compete” with lightning-fast computers and sophisticated algorithms. We humans are struggling to keep up with mocrochips. However, we believe it is too easy to draw the conclusion that the market participants involved in the algorithm based commerce are thugs, or that they engaged in price manipulation, just because they act differently than we have been accustomed to,” she writes.

Adding: “Oslo Børs monitors all stock trade and has on several occasions observed behavior among market participants that there is reason to investigate further.”

Question: Is this a unique case, or is it possible we’re seeing the tip of the iceberg?

“If an investor intends to manipulate the price of a share, he will always look for new ways to do it. That sets the price manipulation cases always differ in terms of procedure and there are hard to categorize something more “unique” than anything else. We have no reason to suspect that there is price manipulation in the “iceberg” scope on the Oslo Stock Exchange, partly because the Oslo Stock Exchange using substantial resources to monitoring and because some attempts will be detected. Oslo Stock Exchange reported 12-15 suspicion of price manipulation to the Finance Authority annually and in any of this matter is also being brought charges.”

(Read more about market surveillance on the Oslo Stock Exchange here: http://www.oslobors.no/Oslo-Boers/Handel/Markedsovervaaking)

Question: What can be done to make the electronic marketplaces safe against this type of fraud?

“The provisions concerning market manipulation are clear and they will apply regardless of whether it is a person or machine that breaks the rules. We also have examples of cases where brokers have been sanctioned because they have set up algorithms that do not work properly, and acting on unwanted manner in the market,” Guro Steine responds.

She refers to the Norwegian Securities Trading Act:

§ 3-8. Market manipulation

(1) No person may conduct market manipulation in relation to financial instruments.

(2) market manipulation means:

1.transactions and trade order which gives or is likely to give false, incorrect or misleading signals about supply, demand or price of financial instruments, or to ensure that the price of one or more financial instruments is at an abnormal or artificial level, unless the person or those persons who have entered into transactions or trade orders filed, proves that the rationale is to be regarded as legitimate and that the transaction or trade order is consistent with the behavior of Finance Authority has accepted that market practice in the relevant market, or

2. transactions entered into or trade orders must be filed in connection with any form of deceptive conduct, or

3. dissemination of information through the media, including via the Internet, or by any other method, when the information gives or is likely to give false, incorrect or misleading signals about financial instruments, including dissemination of rumors and news, when the person who has spread the information knew or should have known that the information was false, incorrect or misleading. When a journalist in his professional activity disseminate such information, the ratio of assessed having regard to the rules that apply to their profession, unless the person directly or indirectly to obtain benefits or profits from the distribution.

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Shipowner John Fredriksen Wihtdraws His Whole Fleet From Norway

In Financial Markets, International Econnomic Politics, National Economic Politics on 18.08.10 at 08:31

The richest man in Norway, and owner of major shipping companies like Golden Ocean and SeaDrill, John Fredriksen, is taking every single ship he owns out of the Norwegian Shipping Registry (NIS) and moving them to the Marshall Islands. Just a year ago Fredriksen said he would bring all of his fleet home.

“We were very happy when Fredriksen said he would flag the ships home. It is therefore correspondingly disappointing that he changes his mind.”

Trond Giske

John Fredriksen

Statements from shipping records show that five ships were flagged out from Norway to the Marshall Islands this summer. That means that all ships that have sailed under the Norwegian flag now are moved out of the country, according to the Norwegian TV channel TV2.

Mr. Fredriksen confirms the fact, but will not comment on why he is now flagging the entire fleet out of the country.

Trond Giske

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Norwegian Industry Minister Trond Giske has worked hard to persuade John Fredriksen to leave several of his ships sailing under the Norwegian flag.

Mr. Giske says the NIS shipping registry is attractive for both Fredriksen and other shipowners.

The Industry Minister has not received a response from Fredriksen on why he’s flagging out his ships.

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A Surprising Change of Course

In July last year the ship owner and investor John Fredriksen said he was considering moving 1930 to 1940 of his ships back to Norway, 31 years after he left, primarily to avoid the Norwegian tax authorities.

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“We already have some Norwegian-registered ship and look positively on participate in the initiatives that strengthen the Norwegian shipping cluster. What it eventually turns into, it is too early to say,” Fredriksen said in November last year.

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And in January this year, the influential businessman decided to flag home four of his ships.

But now he have surprisingly changed his mind, TY2.no reports.

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Golden Ocean Group (GOGL)

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SeaDrill (SDRL)

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Have Norway's Central Bank Lost Touch With Reality?

In Financial Markets, International Econnomic Politics, National Economic Politics, Views, commentaries and opinions on 11.08.10 at 17:56

According to the original plan from last year, the Norwegian key policy rate should now be 2,5%. But over the last months the Central Bank of Norway have been forced to freeze the rate amid growing uncertainties about the economic developments in both Norway and abroad. Some economist suggest that the central bank will have to lower the policy rate again, but at the moment that is out of the question as Norges Bank keeps holding on to its optimistic outlook.

“Recent developments in the Norwegian economy have been broadly in line with expectations. Activity is rising moderately. Inflation has slowed and is now below 2%.”

Svein Gjedrem


“Recent developments in the Norwegian economy have been broadly in line with expectations. Activity is rising moderately. Inflation has slowed and is now below 2 per cent,” Governor Svein Gjedrem at Central Bank of Norway says in a statement after the decision to keep the policy rate unchanged for a while longer.

According to the board of directors at Norges Bank, the global economic growth has been slightly stronger than expected, but the level of activity is still low in advanced economies.

Governor Svein Gjedrem. Central Bank of Norway.

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“Turbulence related to public finances in several European countries has receded,” they say in the press release, adding;  “but the outlook for the US economy is somewhat more uncertain.”

“Considerations relating to both inflation and stable developments in output and employment imply that the interest rate should be kept low. The consideration of guarding against the risk of future financial imbalances that may disturb activity and inflation somewhat further ahead suggests that the interest rate should be gradually brought closer to a more normal level,” Governor Svein Gjedrem concludes.

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Too Optimistic?

Several economists have pointed out that the central bank’s perception of the global economy is just plain wrong.

“There’s one thing I really disagree with; that the Central Bank emphasizes that the global economy is stronger than expected,” says macro economist Shakeb Syed at Handelsbanken to the website DN.no.

He points to statement were the bank writes:  “The growth in the global economy appears to have been somewhat stronger than expected, but the level of activity in industrial countries is still low.”

“You might find a few bright spots in Germany and Britain, but two birds do not make a summer,” Mr. Syed  underlines.

OUTDATED: For some reason, Central Bank of Norway are not taking the lastest downward revisions into account.

Here’s few more optimistic statements from the Norwegian central bankers:

* Growth in world trade and global manufacturing output has slowed somewhat, but overall activity has picked up somewhat faster than expected earlier this year, particularly in some European countries. Growth in emerging market economies is still strong.

* The IMF revised up its global growth forecasts for 2010 from 4.2 per cent in April to 4.6 per cent in July and maintained its growth forecast of 4.3 per cent for 2011.

* Underlying consumer price inflation is low in the euro area and the US. Inflation expectations are still stable in most advanced countries.

* The differential between German and Greek 10-year government bond yields is approximately unchanged at 7.6 percentage points. For Spain and Portugal the differential has narrowed by up to 0.6 percentage point to 1.5 and 2.5 percentage points, respectively. Greece, Spain, Italy and Portugal have conducted successful auctions of government bonds in the market.

* On 23 July, the results of the stress tests on European banks were published. Seven of 91 banks did not satisfy the capital requirements. The tests have reduced the uncertainty surrounding the financial position of the banks.

Here’s a copy of the full statement from the Central Bank of Norway.

(And some nice, good looking, charts to go with it).

Nothing Is Fixed

However Shakeb Syed says that the signs of growth seen in the euro zone lately is just temporary.

Chief economist Shakeb Syed. Handelsbanken ASA.

“I think that overall the picture is pretty dark. Remember that the focus in the euro zone is aimed at cutting budgets –  that is not growth inducing,” he explains.

He points out that there is the same focus in the US, and that you don’t find many good figures there, either.

“I believe in a catch-up in the longer perspective. Throughout the summer we’ve had some pretty okay numbers, but I don’t think were getting such good numbers going forward. I think we get figures showing that growth is very weak,” the Norwegian  macro economist says.

Many of the euro pessimists have been pointing out that the rise in the euro zone is just a flicker, and that none of the issues that dominated Europe in the spring has been resolved.

Shakeb Syed agree.

“There is nothing that is fixed,” he says.

“This only strengthens the belief that interest rates will be ultra low for some time, not only in the US but also in Norway,” he concludes.

The Ghost of Ricardo

In the latest forecast by Norges Bank they estimate a 50% chance of a rate hike in December, and a 50% chance that the increase will come in January next year.

The reason for this uncertainty is (of course) those damn consumers who just won’t behave as expected according to the traditional Keynesian economic theories.

Economist David Ricardo

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Instead they seem to have started saving the extra money they get through low interest rates and various stimulus measures.

Almost like described in the 200 years old economic theories of David Ricardo. A theory usually dismissed because of its lack of empirical studies, and the fact that it presupposes a rational behavior amongst people.

But the fact is that the Norwegian consumption has virtually stagnated in recent months, and at times have been far below the projections of Central Bank of Norway.

During last monetary policy report in June,  the central bank had to take down the consumption estimates sharply.

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Meanwhile – I’m waiting for the revelation….

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Related by the Econotwist:

Norway’s Foggy Outlook

Norway At The End Of An Era

Goodbye Keynes – Hello Ricardo!

The US FED Launch The QE2 – Beta Version

USA Could Be Forced Into Another Trillion Dollar Bank Rescue

Helicopter Ben; Cleared For Take Off

Wolfgang Münchau: A Cynically Calibrated Test To Fix The Result

Financial Authorities See No Point In Stress Testing Norwegian Banks

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DnB NOR acquire 100% of Baltic Subsidiary DnB NORD

In Financial Markets, International Econnomic Politics, National Economic Politics on 02.08.10 at 15:46

The Norwegian main bank DnB NOR is to acquire 100% of its Baltic Subsidiary DnB NORD, the Norwegian bank says in a short statement.

Since 2005, DnB NOR Bank ASA (DnB NOR) and Norddeutsche Landesbank Girozentrale (NORD/LB) have owned 51 per cent and 49 per cent, respectively, of Bank DnB NORD A/S. Bank DnB NORD A/S has subsidiary banks in Latvia, Lithuania and Poland. Today DnB NOR have decided to take over the whole Baltic bank.

“In a statement to Oslo Børs on 14 July 2010, it was announced that DnB NOR, pursuant to the shareholder agreement, had notified NORD/LB that the bank reserved the right to exercise its option to acquire NORD/LB’s 49 per cent ownership interest in Bank DnB NORD A/S,” DnB NOR says in a short market statement.

“In a statement to NORD/LB today, DnB NOR has exercised its option to acquire NORD/LB’s ownership interest in Bank DnB NORD A/S.”

“If the parties do not reach agreement on price, this must be determined in accordance with an agreed arbitration mechanism.”

“DnB NOR considers DnB NORD’s geographic area of operation to be a region with a good future earnings potential, and that this is a good time to strengthen its position in the Baltic region.”

DnB NOR share price up more than 50% over the last 12 months:

Related by the Econotwist:

Financial Authorities See No Point In Stress Testing Norwegian Banks

Norway: Storebrand Subsidiary Sued Over Insurance Contracts

Swedbank To Merge Baltic Subsidiaries Into The Group

Estonia: Banks Lost USD 23 million in Q1

Morgan Stanley To Buy Bad Baltic Loans?

Latvia To Split And Sell Nations Leading Bank

DnB NOR Net Profit Reduced By 33%

The Nordic Superbank Dream

DnB NOR’s Latest Fuck-Up

DnB NOR: “Comprehensive System Failure”

How To Make A Rat Look Like A Puppy

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