Finland’s Sampo Insurance PLC confirmed expectations yesterday with a $2.28 billion bid for Norway’s Storebrand, a 31 percent premium over its recent estimated value, and 16 percent above the rival bid launched by Den Norske Bank.
Storebrand’s board of Directors came out in favor of the Sampo bid, but it still has to face the possible opposition of Norwegian bank and insurance regulators. Most analysts, however, expect that Sampo’s proposal will ultimately prevail.
if successful, Sampo plans to merge its holdings in p/c insurer If with Storebrand’s; it would then control 67.5 percent of the company; Sweden’s Skandia would control the remaining 32.5 percent. “The new If will be the undisputed leading P&C insurance company in the Nordic region with market leading positions in private, commercial and industrial lines,” said a company announcement.
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