DNA holding talks with Icelandic investor on Elisa shares

Talks also held with Telenor, Altimon and Tele2

Thor Björgólfsson

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The mobile telephone operator DNA, which is owned by five provincial telephone companies, is holding talks with Icelandic investor Thor Björgólfsson on the possible purchase of shares of rival mobile operator Elisa.
      A holding of nearly 15 per cent of Elisa’s shares make Thor and his company the largest single owner of Elisa stock. Helsingin Sanomat has learned that the negotiations have made significant progress, and an agreement is expected this week.
      DNA is reportedly willing to pay approximately the market price for the deal, which means that the total cost of the shares would be close to EUR 300 million.
     
The DNA camp bought a five per cent holding in Elisa in the summer. If DNA succeeds in buying the shares now owned by Thor Björgólfsson, the ultimate aim will probably be to merge the business activities of DNA and Elisa.
      The combination would lead to the formation of Finland’s largest mobile operator.
      Thor Björgólfsson is apparently willing to let go of his Elisa stock in order to raise cash to save other business activities, or possibly to re-invest in Iceland.
     
The collapse of share prices in Iceland has created a buyers’ market for bargain hunters. Many Icelandic companies are selling their foreign investments to repatriate the revenues and shore up the country’s economy.
      Other possible buyers for the Elisa stock include the Norwegian Telenor, the Russian Altimo, and the operator Tele2, headed by Harri Koponen. Koponen would not comment on the matter to Helsingin Sanomat.


Previously in HS International Edition:
  Icelandic investor attributes Elisa uproar to "nationalism" (7.1.2008)

Helsingin Sanomat