SAS looking for impressive market show down after a Norwegian politician talk of sales prospects

Monday, 09 September 2013
Shares of ailing Scandinavian Airways System, SAS was rising like craze today Monday on the Stockholm Stock Exchange, just after it emerged that there is growing expectation of shift of power in Norway and which would likely lead the in-coming conservative government to privatise the company.
The privatisation if it happens will mean that Norwegian State will be selling its 14 percent ownership in SAS. Nevertheless, that will still be on condition that the price and other conditions are right and the urgency is not yet there, according to noises in the market, which sources claimed to be come from Svein Flatten, spokesperson of state ownership issues in Norway’s largest Conservative right wing party.
The Conservative Party, according to opinion polls on Monday would be heading to victory in Norway, something already described as a historically bad election result for the incumbent Prime Minister, Jens Stoltenberg.

Conservatives, if they win will have a 4 party government, something an insider said other state listed companies such as oil giant Statoil, telecoms operator, Telenor and fertilizer manufacturer Yara will also be heading for a reduction in government control according to their economic and state management plan. The sales would be based on current stock market prices and expected to contribute to the treasury some Nkr77 billion, according to various reports.

“What we have said about all of our holdings is that they should be sold off over time, but only when the time is right. It is urgent for us not for ideological reasons, “says Svein Flatten. SAS shares by 14 o’clock, Swedish time on Monday rose by 8 percent.

“Well, I’ve noticed that the price has risen a lot in recent days after the report, “said Svein Flatten, but refuses to make any price prediction target for when a divestiture would be appropriate.
After several weeks of campaigning, the economy, environment, oil and poverty among others have filled in the debate, on Monday night, it will be fully determined  who will be Norway’s next prime minister.
Recent polls had shown that the Norwegian Labour Party is heading for a historically bad result, according to NRK, Norway radio and television corporation.
If the polls stand as described then the party would get the second worst election results since 86 years
By Scancomark.com Team