Orkla rumoured to be a takeover candidate - report (translated)
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Orkla, the Norwegian conglomerate which operates within consumer goods, aluminium and the financial sector, is rumoured to be a possible takeover candidate, according to Dagens Naeringsliv.
The Norwegian business daily reported without citing any specific sources that the rumours have increased since Orkla started placing more focus on its branded consumer goods and has become more like its larger international peers. The paper reported that it is speculated that Orkla may be a target for companies such as Swiss Nestle or UK/Dutch Unilever. The paper also reported that Orkla saw its share price rise yesterday after the release of its financial results which was unexpected by analysts. The paper wrote that Orkla passed a market value of NOK 60bn (EUR 6.9bn) for the first time in over six years.
The item cited a Nordea analyst who said that Orkla's results did not warrant such a share price increase considering the company has announced that it will take longer to reach its goals. He said further that he did not believe the price rise was caused by takeover speculation and pointed out that Orkla and the fishing sector are seen as safe places to invest right now due to the turbulent oil sector. He also believed Orkla to be too expensive to be a takeover target.
Meanwhile, a Danske Markets analyst said that the share price rise may be due to the expectation that Orkla's operations will improve and he also pointed to the unstable oil shares.
Dagens Naeringsliv