Nordic Capital has sold a 4.4% stake in TietoEnator, the Scandanavian IT services group, it is trying to acquire. The sell-off suggests that the private equity firm is backing away from its EUR 1.08bn (US$1.67bn) pursuit of the business.
Last week, Finnish shareholders with a 10% shareholding in the business said they would not sell at the EUR 15 per share price Nordic capital has offered prompting speculation that Nordic Capital's bid would fail. Nordic Capital, which is bidding through a vehicle called Cidron Services, has extended the offer period on its bid three times. The offer period now runs out on May 23.
Shares in TietoEnator slumped on the news of Nordic Capital's divestment.
Reports last week suggested Blackstone may partner with fellow Nordic companies Telenor and EDB Business Partner to launch a rival bid. This is yet to materialise.
Source: Thomson Merger News