MeritaNordbanken, the Swedish/Finnish bank, yesterday moved to create the Nordic region's biggest bank when it mounted a 24.3 billion Norwegian krona ($3 billion) cash bid for Christiania Bank, Norway's second-biggest bank.
The move continues the rapid consolidation in the region's banking and insurance markets.
The bid was backed by Christiania management, but success will depend on whether Norwegian politicians, who are sensitive about cross-border incursions, are prepared to sell the state's 35 per cent stake.
Mr Hans Dalborg, MeritaNordbanken chief executive, said: "We want to have market leadership in the Nordic area." His bank is offering NKr44 for each Christiania share, a 29 per cent premium to Friday's closing price.
Shares in Christiania surged 27 per cent to NKr43.20, just below the offer price. In Helsinki, Merita shares closed 0.29 higher at 5.44, while, in Stockholm, Nordbanken shares eased SKr0.10 lower at SKr46.80.
MeritaNordbanken said it had already bought 9.9 per cent of Christiania shares. It pledged savings of Skr80 million a year within three years after Skr75 million of restructuring charges. It also said it would simplify the complicated structure that resulted from the 1997 merger of Merita and Nordbanken, moving to a single share from two shares.
