Norwegian lender launches $1.3bn bid for rival

Norway’s largest bank DNB launched an all-cash offer on Thursday to buy domestic rival Sbanken for 11.1 billion Norwegian crowns ($1.3 billion) in a bid supported by both companies. Sbanken’s shares surged 32 percent to a record high of 105.40 crowns, above DNB’s offer of 103.85 crowns, suggesting that some investors believe competing bids could emerge. “The board of directors is of the opinion that the offer reflects the strong financial and strategic value of the Sbanken group and implies an attractive valuation for shareholders,” said Sbanken Chairman Niklas Midby.

The takeover, if successful, would increase DNB’s share of the Norwegian mortgage market to an estimated 27 percent from about 24 percent and also strengthen its asset management business.