Bonus flights may become a thing of the past (Dagsavisen)

SAS’s acquisition of the Norwegian airline Braathens could mean the end of bonus flights in Norway. This autumn Sweden will pass a law banning such flights because SAS has a near monopoly on domestic air travel. The Norwegian Competition Authority has been keeping an eye on bonus flights for some time. According to the Authority the law is clear and allows for intervention to prevent activities which limit competition.

Only 10 acquisitions stopped out of 200 (Nationen)

In the past five years 200 cases of acquisitions and mergers between companies have been referred to the Norwegian Competition Authority. But the Authority has intervened to halt the transaction in only 10 cases. Statistically then, there is a good chance that the SAS acquisition of Braathens will be approved.

Braathens’ finances under investigation (Verdens Gang)

The Norwegian Competition Authority is to investigate if Braathens is in as poor financial shape as its chief executive Arne A. Jensen claims. "We will be checking if an acquisition could lead to a significant reduction in competition in the market. As part of this evaluation we will be taking a look at Braathens’ finances," says Elisabeth Roscher, head of legal affairs at the Norwegian Competition Authority. If Braathens is not in acute financial difficulties the competition authorities would have a good case for halting the SAS acquisition.

Storebrand’s fate in the balance (Aftenposten)

The National Insurance Fund’s board of directors will decide whether the Finnish financial services company, Sampo, will take over Storebrand. The Fund’s board members are political appointees, and the board will probably do what their political masters want. "We have noted the various comments that have been made," said Bjørn Ven, chairman of the National Insurance Fund. The board’s mandate is to manage the Fund’s assets, and the Government does not have the right to instruct it to take a specific course of action. The board was surprised by the Finance Minister’s comment that he "counted on" the Fund having taken note of the Government’s attitude.

Finance Minister under fire (Dagsavisen)

The bidding war over Storebrand, the major Norwegian insurance company, has entered its first round on the political front. Both Finance Minister Karl Eirik Schjøtt-Pedersen and the majority of MPs have called on Storebrand’s shareholders to reject the bid by the Finnish financial services company, Sampo, in favour of the offer made by Den norske Bank (DnB). Christian Riise, a senior lecturer at the Norwegian School of Management, finds this attitude worrying. He believes that the politicians should keep well out of it, and points to the National Insurance Fund’s statement of purpose which says that the Fund’s objective is to grow its assets in such a way as to be of "greatest possible advantage to the National Insurance Scheme".

Application for EU membership not ruled out (Nationen)

In the Storting yesterday, the Labour Party at first refused to discuss developments in the EU because the issue of membership was not on the agenda. But later the party voted against the Progress Party’s proposal not to seek EU membership during the term of the next Storting. The centre alliance parties and the Socialist Left Party tried to get the Labour Party to say what it thinks about developments in the EU they want Norway to join, but came up against a brick wall when the Government’s Report on Norway and Europe was discussed in the Storting yesterday.

Worth Noting

• Chairman of the Progress Party, Carl I. Hagen, played a new role in the debate on Europe in the Storting yesterday. He talked like an opponent of EU membership and was the warmest supporter of the EEA Agreement. (Aftenposten)
• "We wish to provide a balance to what is missing in the Government’s Report on Norway and Europe and contribute to the debate, said Sigbjørn Gjelsvik, leader of the "No to the EU" organization yesterday when he handed over a "counter-report" on EU politics to Einar Steensnæs (Christian Democrat), leader of the Storting’s Foreign Affairs Committee. (Nationen)
• The Finance Minister and the majority of representatives in the Storting have never tried to influence the National Insurance Fund’s board in the same way as they are doing in the current Storebrand case, according to two long-serving board members, LO secretary Per Gunnar Olsen and banker Stein Blindheim. (Dagens Næringsliv)
• According to Jarle Bergo, deputy governor of the Norwegian Central Bank, an interest rate rise of three percentage points is not completely out of the question. He is warning Norwegian families not to continue borrowing on such a large scale, and is concerned that people could end up in major financial difficulties. (Dagens Næringsliv)
• The hunt for social security cheats is paying off. 55 people were charged with social security fraud during the first four months of the year, which is 22 more than for the same period last year. In addition, the number of cases in which fraud is suspected has exploded. The National Insurance Service is considering whether charges should be brought against a further 134 social security claimants who are currently under investigation. (Verdens Gang)
• In 1992 the Labour Government tried to arrange a merger between SAS and Braathens SAFE. The Braathens family rejected the offer of just over NOK 1 billion. (Dagens Næringsliv)
• Any separation of Church and state cannot take place before 2014 at the earliest. But the National Council of the Church of Norway wants the right to appoint deans and bishops before then. The National Council wants the right to appoint deans to a specific church body to be delegated to it more quickly because this does not have constitutional implications. (Aftenposten)
• It was announced yesterday that HRH Crown Prince Frederik of Denmark is to be Crown Prince Haakon’s best man at the royal wedding to take place 25 August. The bride, Mette-Marit Tjessem Høiby, has chosen Linda Tånevik to be her maid of honour.

Today’s comment from Aftenposten

Norway’s largest life insurance company is in play. The majority of Storebrand’s shareholders look set to accept the offer made by the Finnish financial services company, Sampo, to buy the company. But the Finns should not take anything for granted. Orkla and the National Insurance Fund are individually almost strong enough to block the takeover if they wish to. Allied with Den norske Bank (DnB), which has in no way given up its own ambitions of a merger with Storebrand, they both have control of more than 10 per cent of the shares – which is enough to stop the sale. Sampo’s bid has highlighted the desire by many politicians to ensure that Norway has at least one strong financial institution with Norwegian ownership. It is a natural desire both with regard to national self-respect and to secure competent ownership in the hands of Norway’s own citizens.