Norway

Euronext gives Oslo bourse surprise Christmas gift

24 Dec 2018

The pan-European group is ready to pay 625 mln euros for the Norwegian exchange. The festive offer already has the support of nearly 50 pct of investors. In the consolidating world of electronic trading, it’s getting harder to play alone. Accepting the holiday hamper makes sense.

Norway power failure a rehearsal for bigger shocks

14 Sep 2018

The 114 mln euros Einar Aas lost betting on energy markets was not enough to sink the clearing house backing the trades. But the damage wreaked by one man implies deeper frailties. An increasingly volatile carbon price would make the commodities market vulnerable to a repeat.

Blackstone’s Baltic push can defy sketchy optics

13 Sep 2018

A consortium led by the buyout group is buying 60 pct of Baltic bank Luminor for 1 bln euros. It’s oddly timed, given high-profile money-laundering cases have tainted the local market. But Luminor looks cleaner than most and offers some cost-cutting opportunities.

Norway’s anti-plastics push has firm foundations

6 Sep 2018

Oslo’s $1 trillion wealth fund wants its investments to flag what they’re doing on ocean pollution. As a recent spat over oil and gas holdings shows, political meddling means good intentions don’t always translate into action. That should be less of a problem this time around.

Norway and Saudi face two sides of same problem

24 Aug 2018

Oslo’s $1 trillion wealth fund wants to shed its oil and gas stocks, but a cautious government may not let it. Riyadh’s $250 billion equivalent wants steady growth, but the state may push it into leveraged, risky ventures. Both need more independence, and less political meddling.

Nordea’s bumper payout can weather top-line squall

19 Jul 2018

Scaling back lending to shipping and Russia dragged down the Nordic bank’s revenue and knocked 9 percent off its underlying pre-tax profit in the first half. However, a comfortable capital ratio of 19.9 percent should ensure the lender’s 8 percent dividend yield is safe.

Nordic telecom mash-up gives might to challenger

17 Jul 2018

Sweden’s Telia is beefing up its Norwegian operations by buying rival TDC’s local business for $2.6 bln. That gives it a sturdier platform to challenge incumbent Telenor. Cost savings should help deliver a decent return – as long as it avoids price wars or a regulatory clampdown.

Norwegian Air profit breathes life into bid battle

12 Jul 2018

The transatlantic budget carrier reported a surprise profit. Rising passenger numbers and falling costs will help convince airlines circling the group that its unorthodox model can fly. Suitors like IAG or Lufthansa will be more wary of letting Norwegian fall into rival hands.

Spotify price hikes are dubious profitability plan

27 Apr 2018

The loss-making music service will soon charge Norwegians 10 pct more to listen to its vast song library. That will test if users value it enough to pay a premium over rival Apple. Spotify’s thin margins mean little benefit to investors even from a similar worldwide hike.

BP’s chairman pick is odd balm for old pay scars

26 Apr 2018

The UK oil major has picked ex-Statoil CEO Helge Lund to replace Carl-Henric Svanberg. Lund is a respected figure, but drew investor heat for his high remuneration when at BG Group. Given BP Boss Bob Dudley himself had a pay spat in 2016, it will raise investor eyebrows.

Subsea 7 can still save McDermott from itself

23 Apr 2018

The Oslo-listed oil services group has lobbed in a $2 bln offer for its U.S. counterpart. Subsea 7’s bid looks low, and hinges on McDermott ditching an agreed deal with CB&I. But CB&I’s sale of Stone & Webster to Toshiba is a bad precedent, and Subsea 7 can afford to pay more.

IAG picks good time to ride Norwegian jet stream

12 Apr 2018

The owner of British Airways may bid for budget carrier Norwegian Air Shuttle. The target’s plan to disrupt transatlantic travel is taking off, but its finances are stretched, and rival bidders may struggle to match an offer from IAG. Investors shouldn’t bet on too big a premium.

Blackstone takes calculated risk on Nordic oil

26 Jan 2018

The private equity giant is backing a $1 bln venture to buy fields in Norway. Unpredictable demand for the black stuff means it’s a risky bet. But Blackstone is no stranger to the North Sea, and there’s logic in picking up profitable assets discarded by capital-hungry oil groups.

Norway’s oil exit is a wake-up call for industry

16 Nov 2017

The country’s $1 trln sovereign fund wants to unload oil and gas stocks for diversification. It makes sense given the state’s dependence on fossil fuels, but the world’s biggest equities holder is sending a broader signal: petroleum majors need to prepare for a low-carbon future.

Visma goes viral for private equity owners

29 Jun 2017

KKR is bowing out of the Norwegian software group, with a 22 pct annual return. The buyer, HgCapital, was the seller when KKR bought in 2010. All have done well, because the company’s value has increased ninefold to $5.3 bln. The hard part will be securing an exit at that price.

Global economic prospects look worse for women

1 Nov 2016

Even in highly equal Norway, new data shows women are barely present in some industries. These are exactly the sort of sectors that will benefit from a revival of government-backed spending programmes. Well-intentioned economic policies risk spreading their fruits unevenly.

Bonds’ impersonation of stocks upends investing

24 Oct 2016

Debt investors are increasingly reliant on capital gains in a world of disappearing yields. This shift will force a rethink of old rules on how much money is ideally allocated to so-called safer fixed-income assets. Stocks and investments such as infrastructure stand to benefit.

Failed Chinese web deal is a $1.2 bln mystery

18 Jul 2016

Norway's Opera Software is selling parts of its business to a Chinese consortium for $600 mln after a full takeover did not get regulatory approval in time. Yet investors are still in the dark about why the deal did not proceed. The proposed partial sale is little consolation.

BP wisely chooses growth over control in Norway

10 Jun 2016

The UK oil major is putting its Norwegian business together with Det norske and its majority investor in a $1.3 billion share deal. BP will have a minority stake, but matching its mature assets with Det norske’s growing and efficient operations makes sense.

Adtech deal arms China’s web groups against giants

11 Feb 2016

A consortium including search specialist Qihoo and gaming firm Kunlun are bidding $1.2 bln for Norway’s Opera Software. Despite a fat premium, the offer is not overly pricey. Plus, Opera could help the buyers move into lucrative niches not yet taken by Baidu, Alibaba or Tencent.