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Business News...

Published tisdag 8 februari 2005 kl 11.23

According to a shareholder in Danish Oil and Natural Gas (DONG), the company has raised its stake in power producer Elsam above 56%, well above  Swedish rival Vattenfall’ s35%.

The two state-owned firms have gone head-to-head in a battle for Elsam as they try to consolidate their positions in the Nordic region and strengthen themselves against growing competition across the power sector in Europe.

Despite DONG’s latest coup, it remains unclear who will end up controlling Elsam.

The Danish government, which planned to merge DONG and Elsam, does not want Swedish owned Vattenfall as a shareholder.

The two rivals’ ambitions are also complicated by pre-emptive rights with many of the shares that are traded. This means that the original Elsam shareholders have the right to buy its shares within a four-week period after they are traded, provided they offer the same price.

US$14 Million Contract To Bofors

Bofors Defence AB, has received a contract valued at US$14 million from Finland for two 57-mm Mk 3 Naval Guns. The contract provides for the production and installation of the two guns for Finland’s patrol ships of the Squadron 2000 class.

Bofors Defence is completing an earlier contract for the production of the first two 57-mm guns for the same ship class.

The new contract provides for the production of the gun systems, training services, spares, and the associated ammunition with delivery of the first gun in 2005 and the second in 2006.

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