(updating with full report)
STOCKHOLM (AFX) - Shares closed firmly higher, with Scania leading the market upwards on speculation that MAN will hike its bid for the company, and with TeliaSonera, Nordea, and SAS with large government ownership, outperforming on expectations of sales of these stakes following the election, brokers said.
The OMX Stockholm index closed up 0.69 pct at 332.87, and the OMX Stockholm 30 was up 0.65 pct at 1,032.11.
Scania B closed up 5.77 pct at 449. This morning MAN bid 0.151 of its ordinary shares plus 38.35 eur cash per Scania share in a 9.6 bln eur offer. The bid values Scania at 48 eur (440 skr) per share.
Investor, which owns 10.8 pct of the capital and 19.3 pct of the votes in Scania, rejected the bid, saying it does not 'reflect the fair value and potential of Scania'. Scania's board also rejected the bid.
'People are absolutely speculating on a higher bid, another conclusion cannot be drawn,' Anders Bruzelius at Swedbank said.
'Investor obviously thinks the bid is too low, but whether they want more cash, a high cash component, or more shares is completely unknown. I find it very strange that the bid was not anchored better,' he added.
Investor B closed up 0.65 pct at 154.
TeliaSonera closed up 1.33 pct at 45.70, Nordea up 1.34 pct at 94.25, and SAS up 2.46 pct at 93.75.
The centre-right Alliance have said they are positive about less state involvement in the economy and do not see the need for state-owned companies in sectors which already have functioning markets.
'The market is reasoning that it is never good with large government ownership in companies, and would welcome a sale of their stakes. This more than weighs up the increased supply of shares coming out into the market for these companies, since the assumption is that the market could easily swallow it,' Sandro Moro, a strategist at Handelsbanken said.
Ericsson B closed down 0.40 pct at 24.80, and Nokia down 1.79 pct at 137.
OMX closed up 3.08 pct at 134, still benefiting from recent reports that the Nasdaq and or the LSE are interested in making a bid for it.
Autoliv closed down 2.73 pct at 392 after being downgraded to 'hold' from 'buy', with a reduced price target of 58 usd from 62 at Citigroup, on the back of a deterioration in the US trading environment and a pause in the share buyback program.
In a note to clients, Citigroup said that Autoliv derives nearly 27 pct of its revenues from North America, with about 15 pct coming from the Big-3.
Citigroup's US team currently expects a 6 pct cut to fourth quarter production, and flat output in 2007, adding that the downsizing of the US market also presents a mix problem for Autoliv.
Among other shares heavily traded, SEB A closed up 1 pct at 202, Volvo B up 0.70 pct at 432.50, and Husqvarna up 3.75 pct at 83. stockholm@afxnews.com sjr/rw/sjr/rw COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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