Defence headquarters to Jåttå (NTB)

Jåttå in Stavanger, on the southwest coast, has been chosen as the location for the Norwegian defence headquarters. Jåttå received 94 votes against 69 votes for Reiten, near Bodø, when the Storting decided the issue last night. It was primarily Labour and Conservative Party votes which ensured that Jåttå won the day. The Labour Party’s entire parliamentary group (64) voted in favour of Jåttå, which was the Government’s choice. 22 Conservative MPs voted for Jåttå, while the party’s two representatives from Troms and Nordland counties refused the whip and voted for Reiten. However, the Storting could not reach agreement on the Armed Forces’s budget for the next four years. Three different proposals were put to the vote, but none of them received a majority.

Conservatives will make Hagen president (Dagbladet)

Carl I. Hagen is to be offered the presidency of the Storting, and the Progress Party will gain considerable influence through a political agreement. After that the Conservative Party can form a government in coalition with the Christian Democrats and the Liberals. These are the main planks in a secret post-election strategy the Conservatives are currently developing. In deepest secrecy the Conservatives have begun to hammer out a strategy to put them into office. Dagbladet has received confirmation from centrally placed sources that the recent positive opinion poll results have already prompted party strategists to start preparing to take over the reins of government after the election. The challenge will be to get Carl I. Hagen to remain supportive of a centre-right coalition, while accepting that the Progress Party will not be invited on board.

Cancer specialists to sue Government for NOK 185 million (Aftenposten)

Ten cancer research scientists at the Norwegian Cancer Hospital are suing the hospital and the Government in an attempt to win their share of the profits from their many years of research at the hospital. The scientists have developed a patented cancer drug, and the rights to that technology are controlled by PhotoCure, a listed company worth NOK 1.85 billion. The hospital owns shares in the company to the tune of NOK 500 million. The scientists now want a third of the company, but despite lengthy negotiations with the hospital no agreement has been reached.

Minister brings Telenor boss to book (Aftenposten)

Trade and Industry Minister Grete Knudsen is furious with Telenor chief executive Tormod Hermansen after he went behind her back and in a meeting with the Storting’s business and industry committee proposed that the company’s share capital should be increased by NOK 15 billion. Ms Knudsen first learned of Mr Hermansen’s proposal when she attended the committee’s meeting. She feels Mr Hermansen needs a lesson in manners.

Statoil not scared by EU threats (Aftenposten)

The EU is threatening to slap a hefty fine on Statoil just three days before the company’s share subscription period runs out. But Statoil’s management is unruffled by the threat of a fine, which could amount to several billion kroner. Yesterday the EU’s competition authority sent a letter to Statoil and Norsk Hydro informing them that the EU had made a formal complaint against the two companies. The European Commission has thereby initiated formal proceedings against Statoil and Norsk Hydro, which it accuses of infringing the EU’s competition rules in connection with gas sales.

Aker Maritime ready for sale (Dagens Næringsliv)

Kjell Inge Røkke wants to get rid of Aker Maritime’s minority shareholders and the so-called "Røkke rebate", and the company’s extremely strong balance sheet will allow him to do so. Mr Røkke’s Aker Maritime is now ready either to be sold or restructured. The shareholders can now allow themselves to be bought out for NOK 95 per share, paid for in a combination of cash and shares in the French seismic company, CGG. Aker Maritime can then be de-listed from the Oslo Stock Exchange. This is how chief executive Sverre Skogen hopes to solve one of the company’s pressing problems. "Our share price does not reflect the true value of the company, which is much higher. This is something the company cannot live with," said Mr Skogen.

Worth Noting

• The London based stock brokers Tullet & Tokyo Liberty are having a hard time selling Statoil shares in the unlisted market. No one wants to buy the shares, so there is no trade. This is seen as an indication that the company’s share price will not perform well after its stock market flotation. (Dagens Næringsliv)
• Gerd-Liv Valla, president of the Norwegian Confederation of Trade Unions (LO), thinks it would be a good idea for the public services to explain what people get in return for the taxes they pay. The explanation should sent out together with the yearly tax return forms. (Nationen)
• The reform in the care of the elderly, the lowering of the school starting age to six and other central government straight-jackets will have left Norwegian local authorities with debts totalling NOK 52.8 billion by the end of the year. This estimate has been calculated by the Ministry of Local Government and Regional Development at the request of the Centre Party’s parliamentary group. (Nationen)
• The Storting has demanded to be given access to all the details in a controversial adoption case. For the first time Ms Bekkemellem Orheim has admitted that she could have made a mistake. Liven Armer, an employee of the Governmental Office for Youth and Adoption, SUAK, was fired from her job after she sent a letter to the minister protesting against the decision to allow a mentally retarded woman to adopt a baby from China. If necessary Ms Bekkemellem Orheim will have to answer for her decision at a hearing in the middle of the election campaign. (Verdens Gang)
• For three years Carl-Erik Grimstad was one of the royal family’s closest advisers. However, the political scientist’s parting gift is a book, published today, in which he launches a frontal attack on the entire royal family. At the same time he is calling for a more balanced debate about the monarchy as a constitutional form. (Dagbladet)
• Stein Erik Hagen has called on Storebrand’s shareholders to choose to be paid in Sampo shares rather than cash in order to gain as big a stake as possible in the Finnish company. Mr Hagen says that the politicians have themselves to blame if control of Storebrand disappears abroad. (Dagens Næringsliv)
• Good news for sheep farmers and wolf-haters. The Norwegian authorities’ efforts to limit the number of wolves in the country have succeeded. No more than three litters of wolf cubs are expected to be born on the Norwegian side of the border this year. In the past year the number of wolves in Norway has been cut by half. Today there are no more than 15 wolves in Norway. (Dagbladet)

Today’s comment from Nationen

In a surprise move earlier this week Telenor’s chief executive, Tormod Hermansen, went before the Storting’s business and industry committee and asked for NOK 15 billion extra cash in the form of government participation in a new share issue. The surprise was that he had not previously consulted either Telenor’s chairman, Eivind Reiten, or any other board members. There are also doubts about whether Trade and Industry Minister Grete Knudsen had been informed about Mr Hermansen’s request. The real reason Mr Hermansen was appearing before the committee was to take part in a hearing on the Government’s proposed sell-off of Telenor shares to bring its stake down from 51 per cent to 34 per cent. The sell-off has the backing of a majority in the Storting, but the request for an additional NOK 15 billion is opposed by a substantial majority of MPs. Not only that, but Mr Hermansen’s tactic of raising the matter of a new share issue practically under "any other business" in a meeting of the business and industry committee without clearing it beforehand with his chairman or other key shareholders’ representatives, has provoked considerable irritation both inside the Storting and outside. One can think what one likes about the Government’s sell-off of Telenor shares, but once the proposal has gained majority support in the Storting, the company must stick to the rules of the game. On the other hand, if the level of state ownership had been maintained, the Government would have had to invest more capital to ensure the company had both room for manoeuvre and the highest possible credit rating. It will be interesting to follow Telenor’s progress in the time ahead.

Telecoms shares, led by Nokia, have had a rough ride on the world’s stock markets lately. There are few who doubt the market has a huge potential, but which companies have the financial muscle and the ability to exploit it? It is now up to Telenor to demonstrate that it can be among the leaders despite tough international competition from, amongst others, Sweden’s Telia.