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Swedish government close to selling remaining stake in NordeaWednesday, 03 October 2012
The Swedish government, which still owns some 13.5 percent shares in the Nordic banking giant Nordea, could be selling the rest or some of the shares soon.
Swedish media sources are reporting that the government wants to continue where it ended last years when it sold some share already. One driver at this moment is that the share price of the company is strong and thus would attract more revenue if sold at the current rate.
Strategically, for the governments' political future, an injection of money from the sale of Nordea shares into the state budget would increase the governing alliance coalition's parties chance of re-election, some analysts believe.
The state currently owns 13.5 percent shares in Nordea. The holding is currently worth around Skr35 billion.
The share price of Nordea share today stand at Skr65 and are up to Skr70, including dividends, the same level as when the government last sold Nordea shares in February 2011 under the then Minister for Financial Markets, Mats Odell. As such the company gave it a windfall of Skr19 billion that was used to reduce the national debt.
Simon Blecher, manager of Carnegie Sweden Fund told the Swedish daily, Svenka dagbladet that the single most important factor for the government in terms of time, is that the share price remain strong.
An analyst who did not want to identified also believe that the situation is favourable for several foreign banks who are look negatively to underweight European banks and are directing their attention to Swedish banks. So there are good opportunities to find buyers.
By Scancomark.com Team
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