Norway

Norway’s $1.1 trln fund is a bad toy for hedgies

24 August 2020

Nicolai Tangen’s appointment as boss of the gargantuan rainy-day fund hangs in the balance. Norwegians mostly worry about the big investor’s conflicts, but his likely approach is a larger concern. Active trading of so much money could pointlessly disrupt global markets.

Seller wins in eBay’s $9 bln classifieds auction

20 July 2020

Norway’s Adevinta, controlled by media conglomerate Schibsted, won the race to buy the U.S. group’s online-listings business, Reuters reported. It may struggle to make a decent return. EBay, however, gets a good price and the chance to gain from likely consolidation in Europe.

Tycoon’s rig empire leaves lenders deep underwater

3 June 2020

Oslo-listed Seadrill, founded by billionaire John Fredriksen, wants to swap its $7.4 bln of debt for equity. A slump in crude prices means creditors will face heavy losses. But, with oil majors retrenching and rigs heading for the scrapyard, a bankruptcy could be even messier.

Norway shines awkward light on Big Oil dividends

23 April 2020

Oslo’s state-owned $42 bln Equinor is slashing its first-quarter payout by 67% after oil prices turned negative this week. Bigger peers like Royal Dutch Shell really won’t want to follow suit and have some leeway not to. But a live example of caution makes it harder to hold firm.

Norwegian Air is lesson in bare-bones bailout

14 April 2020

The airline’s future hinges on creditors swapping $4.3 bln of debt for its nearly worthless equity. That would unlock enough state funds to allow the company to operate as a regional carrier. Its loss-making dream of a low-cost transatlantic revolution is dead whatever happens.

Pre-virus era rule book will lead investors astray

31 March 2020

The market rout means Norway’s wealth fund and other money managers are less exposed to stocks than their ideal purely because shares fell so much relative to bonds. Rectifying the imbalance would unleash equity buying of $500 bln or more. But a return to old norms will be risky.

Exxon Mobil quits North Sea with bags full of gold

27 September 2019

The U.S. oil major is shifting capital from high-cost fields to higher-growth areas closer to home. That’s sensible, and a $4.5 bln price tag for its Norwegian operations is a good exit. It’s some consolation for investors antsy about Exxon’s laid-back approach to climate change.

Southeast Asia joins global telecom M&A hang-up

6 September 2019

Telenor and Axiata ended talks to create a $40 bln regional champion. A complicated structure and Malaysia’s nationalist tendencies eclipsed the allure of big cost savings. The difficulty of merging phone operators around the world presents a growing problem for investors.

Lowball Nordic IT sale gives Apax a better exit

18 June 2019

The buyout firm accepted a lowly 1.3 bln euro cash-and-shares offer for Norwegian computer services firm Evry from Finnish rival Tieto. The measly 15% premium is less than half the value created by cost savings. Still, a 20% stake in the combined group should be easier to sell.

Norwasian telecom deal dials right numbers

6 May 2019

Telenor and Malaysia’s Axiata are aiming to form a regional champion with some 300 mln customers by merging their South and Southeast Asian businesses. Bigger looks better with savings worth some $5 bln expected. Kuala Lumpur might raise an eyebrow at less competition, though.

Nordic $3.2 bln telco deal makes little sense

9 April 2019

Norway’s Telenor is buying a majority stake in Finland’s DNA and will offer to buy the rest for a total price tag of 2.8 bln euros. The financial returns of this odd move into a mature market will be so slim that CEO Sigve Brekke may do better by handing more cash to investors.

Euronext-Nasdaq row tests Norway’s market faith

4 April 2019

The $800 mln takeover battle for Oslo’s stock exchange should reside solely on financial logic. The cash offers are identical. But Euronext wooed more investors. Allowing Nasdaq to tweak the rules of engagement would be a defeat for capital markets, and Norway.

Norway’s mega-fund fluffs move away from crude

8 March 2019

Oslo’s $1 trillion wealth fund will ditch oil exploration stocks, but stay invested in groups that also do refining. As a big producer Norway needs to tread carefully. But accepting the risk of subpar returns could have been a way to show greater climate change leadership.

Battle for Oslo Bors shows bidders’ fatigue

4 March 2019

Nasdaq has hiked its offer for the Norwegian exchange to 158 Norwegian crowns a share, or $788 mln, on a par with an already raised bid by Euronext. Its scale in the region gives it a minor edge. But the face off shows both suitors are already at the limit of financial logic.

Norway’s giant oil fund flaunts Achilles’ heel

27 February 2019

The Nordic state’s $1 trillion wealth vehicle lost money in 2018. A political mandate that obliges it to hold more equities rather than diversifying its exposure explains why. Even if these shackles were removed, the fund’s size complicates efforts to rev up performance.

Norwegian investors only winners in bourse battle

11 February 2019

Euronext has hiked its bid for Norway’s stock exchange to $785 million. The hefty premium may no longer cover expected cost savings, and does not guarantee a victory against rival bidder Nasdaq. Shareholders in the Oslo exchange are beneficiaries of the larger groups’ largesse.

Germany chooses familiar sin in $4 bln bank rescue

4 February 2019

Regional governments and other lenders are bailing out NordLB. The salvage keeps the sickly bank in public hands, but is costlier for taxpayers than other options, like hitting bondholders. The old-school bailout reinforces the case for consolidation in Germany’s banking system.

Nasdaq’s Oslo Bors assault has Nordic edge

30 January 2019

The U.S. group is spoiling Euronext’s party with a $770 mln cash bid for the Norwegian bourse. The new offer carries a sweetener of just 5 pct but has the backing of two big local investors. Nasdaq’s larger presence in the region could sway investors and mean bigger synergies.

IAG is surprise first loser in airline fuel casino

24 January 2019

The BA owner is set to sell its stake in Norwegian Air. When IAG bought in last April, higher oil prices made it plausible that its unhedged smaller rival would become vulnerable to a takeover. As it happens, a sharp fall in crude values means the egg is instead on its own face.

LSE Nordic raid would be expensive complication

24 January 2019

The London Stock Exchange is mulling a bid for Oslo Bors, says the Evening Standard. The Norwegian group is already the target of a pricey offer by Euronext, and LSE’s links with it limit cost savings. The takeover would be a costly distraction from bigger issues, like Brexit.