Hitt og þetta 26. apríl 2006

(IFN) Lansbanki hires Deutsche to sell Carnegie stake

Reykajvik/Stockholm (IFN) Icelandic bank Landsbanki Islands has hired Deutsche Bank to sell its 19.8% stake in Swedish investment bank Carnegie, Landsbanki said on Wednesday.

Landsbanki currently holds 13,643,280 shares in Carnegie. The shareholding was acquired as a part of trading assets received in the merger with the investment company Burdaras, which was announced on August 2 last year.

The proposed sale is consistent with Landsbanki's strategy of actively managing its trading portfolio positions and focusing the bank's effort on integrating its international operations, the bank said in a statement.

?The sale is not surprising in the light of recent turmoil, especially as it has made it more expensive for Icelandic banks to raise funds in the international capital markets," Kaupthing analyst David Rudolfsson said.

Iceland's blue-chip index has suffered in the last weeks because of recent critical reports about the country's three major banks, which have grown quickly in recent years through debt-funded acquisitions, and the overheating Iceandic economy.

?I believe that the bank had plans to make a move on Carnegie but has decided against it because of market conditions," Rudolfsson said, adding that Iceland's three major banks would not be looking for large acquisitions in 2006.

The shares are being sold to international institutional investors through an accelerated bookbuilding offering.

Deutsche Bank is acting as sole bookrunner of the offering, with Carnegie acting as a sales agent on the transaction.

The sale is contingent upon Landsbanki receiving an acceptable price for the shares at Landsbanki's sole discretion.


Icelandic Financial News (IFN) is available on Factiva, a joint venture between Reuters and Dow Jones Newswires, FT.COM, LexisNexis, Comtex, Gale and Thomson via the Nordic Business Report.