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Hitt og þetta 18. apríl 2006

(IFN) S&P places Nemi on credit watch following TM bid

London (IFN) ? International ratings agency Standard & Poor's has placed its BBB long-term counterparty credit and insurer financial strength ratings of Norwegian commercial insurer Nemi on credit watch with negative implications, S&P said last week.

The ratings agency said the decision is linked to Icelandic Trygginamidstodin's (TM) NOK887 million offer for the entire share capital of Nemi, which is listed on the Oslo Stock Exchange.

TM has secured a 68% stake in Nemi and has offered to buy out the reminder for NOK62.5 per share, valuing Nemi at NOK887 million.

Nemi said that its board has not yet submitted an opinion on the offer.

"Until the board has submitted their opinion on the offer, the board will recommend the shareholders not to decide whether they will accept or not," The company said in a statement, following TM's offer last week.

S&P said that its credit watch placement of Nemi reflects the uncertainties of TM's bid, adding that the impact of a successful bid is unclear. The company said it would update its rating opinion as further details become available.

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