Norwegian Unison board supports reduces takeover offer from Sparebank 1

23 June 2010 - The board of directors of Norwegian insurer Unison Forsikring ASA (OSL: UNISON) recommended Wednesday shareholders to accept the reduced bid for the company of Sparebank 1 Skadeforsikring AS.

On 21 June 2010, Sparebank 1 Skadeforsikring, part of Norwegian financial services group Sparebank 1 Gruppen AS (OSL: SBGRP), lowered its bid to NOK5 apiece from NOK14, after discovering negative posts related to the marine insurance operations of Unison in the period 2002 to 2007. The downgraded bid values the company at around NOK56m.

Earlier in June, Sparebank 1 launched its original offer, outbidding Norwegian insurer Protector Forsikring ASA (OSL: PROTCT) which had previously unveiled plans to pay NOK11 apiece.

Sparebank 1 has received the approval of the Norwegian financial and the competition watchdogs to acquire all shares in Unison. The only remaining condition to complete the bid remains to achieve an acceptance exceeding 90%. The acceptance period expires today.

If the necessary acceptance is achieved, Unison will summon an extraordinary general meeting to approve a NOK150m private placement to Sparebank 1. The move is required to meet regulatory capital requirements, as well as to support the company's growth strategy.

If Sparebank 1 fails to achieve the necessary acceptance level and thus withdraws its bid, the operations in Unison Forsikring might have to be terminated immediately as a result of the capital situation in the company, the board said.

(EUR1 = NOK7.9)

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