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Swedish bank eyes Fokus deal
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November 10, 1998: 11:01 a.m. ET
Handelsbanken is favorite to take control of Norway's Fokus, but obstacles remain
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LONDON (CNNfn) - Sweden's Handelsbanken is the leading contender to snap up Norwegian rival Fokus, following the collapse of Fokus's proposed merger with two other Norwegian banks.
Analysts warn however, that Handelsbanken may not have things all its own way.
Handelsbanken "is the only deal on the table," according to Ian McEwen, banks analyst at Lehman Brothers in London, "but under Norwegian law Handelsbanken needs more than 90 percent acceptance from Fokus shareholders. That won't be easy".
Late Tuesday Fokus, the largest publicly-traded bank in Norway, announced it was pulling out of a three-way merger with fellow Norwegian banks Christiania and Postbanken.
That three-way deal allegedly collapsed because agreement could not be reached on the use of post offices in the network of branches. In Northern Europe, it is common for post offices to conduct certain bank functions, particularly services related to savings accounts.
"For the moment the deal is off," said Lehman's McEwen, "although down the road the future is unclear".
Handelsbanken has bid 70 crowns a share in cash for Fokus, valuing the Norwegian group at 5.9 billion crowns ($690 million.)
In late Wednesday trade Fokus shares were 63.5 crowns, up nearly 8 percent on the day.
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