Press Release

No: 64/1999
Date: 20 September 1999

Press statement from the Norwegian Minister of Finance Mr Gudmund Restad concerning MeritaNordbanken’s bid for Christiania Bank

- The take-over bid raises difficult questions in relation to both the authorisation policy and the guidelines for State ownership of the financial institutions, says Minister of Finance Mr Gudmund Restad about the bid from MeritaNordbanken.

- The Government wants to maintain national ownership in the largest Norwegian financial institutions. The Government also underlines that no institution should achieve a dominant position. We want solid and competitive institutions with their headquarter in Norway, and there must also be effective competition between them, Mr Restad adds. These are important elements in the structural policy guidelines, which were presented to the Storting (Parliament) 25 September 1998. A large majority in the Storting agreed to this.

A possible take-over of Christiania Bank will require an authorisation from the Ministry of Finance. The structural policy guidelines state that the Ministry of Finance, when assessing the application for an authorisation, will follow a restrictive policy with regard to take-overs of the largest Norwegian financial institutions. Norwegian and foreign institutions will, in accordance with Norway’s international obligations, be equally treated in relation to the structural policy guidelines.

A majority in the Storting has presupposed that the State shall own at least one third of the shares in the two largest commercial banks. The State now holds 34.6 pct of the shares in Christiania Bank. The Government Bank Investment Fund exercises the State ownership in conformity with guidelines established by the Government and the Storting. An important element in these guidelines is to maintain a stable national ownership in the two largest commercial banks.

Contact: Anne-Sissel Skånvik, telephone +47 22 24 41 09