New suppliers behind Swedish broadband price war

The broadband services market is experiencing a price war at present. ADSL prices have fallen by an average of 7 % since the New Year, while, excluding Telia, they have fallen by 13 %. The price cuts are due to the entry of new suppliers onto the market, of which Telia has around 60 %.

Tabloid format cuts costs

Nya Wermlandstidningen has just announced that it too is going over to tabloid format. In theory, newspaper publishers can lower the cost of personnel, paper and distribution, while retaining their advertising revenue. The new format “probably does not generate additional advertising income”.

TV4 to start new channel

TV4 improved its Q4 earnings, but saw its profit for 2004 as a whole fall by 62 % to SKr 41 million. The company plans to start a new news reporting channel called TV4 Fakta. TV4 is to halve its dividend to SKr 2.50 per share.

IKEA sphere sells Glocalnet

Catella and Inter Ikea, two companies in the IKEA sphere, have sold all their shares in Glocalnet (8.7 + 11.2 %) to Quotz Asset Management, a British Virgin Islands registered company that now owns the equivalent of 19.9 % of the shares and votes in the telecom operator.

Sources: Dagens Nyheter, Svenska Dagbladet, Dagens Industri


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Corporate deals set to take off in Sweden in 2011: report

Sweden is one of the hottest markets in the Nordic region for corporate mergers and acquisitions, according to a new report.

Eight out of ten managers at large Nordic companies surveyed by business consultancy KPMG expected the M&A market in Sweden to grow in 2011.

Corporate deal growth in Sweden’s neighbours Denmark, Norway, and Finland, meanwhile, was only predicted by about 60 percent of the survey’s respondents.

The results of the survey are published as part of an annual review of M&A activity published by KPMG entitled Competing for growth 2011.

“We see that both venture capital firms and industrial firms are well positioned for even more business in 2011,” Christopher Fägerskiöld, head of M&A advising for KPMG Sweden, said in a statement.

According to Fägerskiöld, venture capital firms have had a difficult time selling their holdings during the financial crisis, leading to a pent up need to sell.

“At the same time, they need to show they can make acquisitions, not least those who plan on taking in money for new funds,” he said.

Last year, there were 158 deals in which companies from outside the Nordics bought a Nordic company, an increase of 48 percent.

“The most notable example was that Volvo Cars was sold to Chinese Geely,” said Fägerskiöld.

“It’s the first time that a privately owned Chinese company has bought a large and well-known western European company. It may very well pave the way for similar acquisitions.”

Respondents to the survey singled out China as the non-Nordic country that will likely carry out the most deals in the Nordic region in 2011, followed by Germany and the United States.

“We see a large interest from Swedish industrial companies to strengthen their position in Asia by acquisitions or cooperation with local companies,” said Fägerskiöld.

Many companies feel pressure to act so that the competition doesn’t get to China first.”