News of Norway, July 1, 2002
According to Storebrand board chairman Leiv L. Nergaard, DnB and Storebrand lost confidence in each other after debates on how to determine the trade-in value of Storebrand stocks.
Better price
- The question we had to ask was if the expected synergy effect was now realistic, Nergaard told Norwegian newspaper Aftenposten.
DnB refused to let a neutral organisation assess what the two parties had found out about each other in the course of the merger negotiations. This infuriated Nergaard.
DnB and Storebrand announced in May that the two companies would merge as soon as possible. Two months later, DnB wanted a better price for Storebrand. The original agreement stated that each share in Storebrand would yield 1.33 shares in DnB.
Shareholders in mind
According to board chairman Jannik Lindbaek in DnB, the company felt this price was too high for the bank after reviewing Storebrand files.
- We have taken the opportunity we had to withdraw from the integration agreement, he told Norwegian internet newspaper Nettavisen.
- The DnB board has consistently said that the real economic circumstances must be mirrored in the trade value of the shares. The board cannot do something that does not prove beneficial for our shareholders, Lindbaek said.
According to business paper Dagens Næringsliv, the Storebrand owned Finansbanken has been a major topic of concern. The newspaper writes that DnB has found information regarding the bank that is serious enough to change the agreed conversion ratio of shares.