STOCKHOLM (Dow Jones)--Swedish bank FoereningsSparbanken AB (FSPA-A.SK) Tuesday raised its takeover offer for AS Hansabank (HAP1T.ET) to EUR 13.50 per share, and now looks set to take full control of Estonia's largest bank.
FoereningsSparbanken, internationally known as Swedbank, increased its offer for the 40% of Hansabank it doesn't already own after the management of the Estonian bank balked at the original offer of EUR 11.00 a share last week.
"The decision to increase the price of the offer is based on the belief that the certainty and clarity of our strategy regarding Hansabank outweighs the disadvantage of paying the higher price," said Swedbank Chairman Carl Eric Staalberg, in a statement.
"The acquisition of the outstanding shares of Hansabank is an important step in our strategy to build a leading Nordic-Baltic bank," he said.
Stockholm-based Swedbank, which began acquiring Hansabank shares in 1998, was widely expected to sweeten its original bid.
The original EUR 11.00-a-share bid was a 4.7% premium over the closing price of Hansabank shares the day before the offer was made.
Swedbank's takeover attempt and announcement that it would seek to delist Hansabank from the Tallinn Stock Exchange - it represents about 70% of the market's capitalization - caused a minority group of Estonian investors to claim that the Swedish bank informed certain holders before others about its approach.
Swedbank denied the charges and returned to negotiate with Estonian and international investors who control more than 20% of Hansabank shares.
Swedbank subsequently raised its offer 23%.
"Now that Swedbank has negotiated with many of Hansabank's shareholders, the chances of getting the offer accepted has increased significantly," said Sigmund Haaland, an analyst at ABG Sundal Collier. Haaland rates Swedbank shares hold.
"This may be the last we hear," before Swedbank takes over Hansabank, he said.
The combination of high volume growth in the Baltic region, increased margin pressure and the possibility of higher credit losses in the future, make it difficult for Haaland to predict whether Swedbank is overpaying for Hansabank.
"But you can't get extremely high growth without any volatility," he said.
At 1446 GMT share of Swedbank were unchanged at SEK 165.50.
The new offer is "reasonable," said Lars Frick, an analyst at Kaupthing.
"A higher offer would be negative for Swedbank," he said.
In addition to raising its offer, Swedbank also said it would waive the requirement that at least 95% of Hansabank investors would have to accept its bid. The Swedish bank said it intends to buy the remaining shares of Hansabank in the open market.
Company Web site : http://www.swedbank.com
http://www.hansabank.com
- By Maria Akerhielm, Dow Jones Newswires ; +46 8 54513093 ;
maria.akerhielm@ dowjones.com
(Rod Stone contributed to this report).
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