Stockholm shares close firmly higher buoyed by positive Q4, acquisitions UPDATE

Stockholm shares close firmly higher buoyed by positive Q4, acquisitions UPDATE

	Published : Mon, 26 Feb 2007 18:19 By : Agencies Print this Story

(Updating with full report)

STOCKHOLM (AFX) - Shares closed firmly higher on bargain hunting after last week's weakness, with positive sentiment underpinned by the strong fourth quarter results season and by ongoing merger and acquisition activity, brokers said.

The OMX Stockholm index closed up 0.92 pct at 400.64, and the OMX Stockholm 30 up 0.93 pct at 1,229.65. Turnover was 19.971 bln skr.

Ericsson B closed up 0.58 pct at 26.00 skr and Nokia down 0.16 pct at 161 after Ericsson announced a 106 nkr per share or 8.9 bln skr net cash bid for Norway's Tandberg Television in order to boost its IPTV product offering.

Ericsson, already holds 11.7 pct of Tandberg and has 'irrevocable' acceptances for a further 13 pct of the shares. Its bid is 10.4 pct higher than the 96 skr per share offered by US networks group Arris in mid-January.

Ericsson said the bid is a 'significant step toward (a) world leadership position in IPTV,' (Internet Protocol Television), which allows people to access television via the Internet or their mobile phone.

Analysts said the bid was industrially correct, but will have only a minor impact on Ericsson's financials.

'The acquisition will be a significant enhancement for Ericsson (its product offering), and we know that Ericsson is planning a push into IPTV in the second half,' an analyst at a European investment bank said.

Among the telecom operators, TeliaSonera closed up 1.23 pct at 61.75, and Tele2 B up 1.12 pct at 113.00.

Steel producer SSAB A was the day's main winner, closing up 5.15 pct at 204 skr on continued positive sentiment around the steel sector in general and the perceptions that SSAB is a possible takeover candidate.

Among the engineers, SKF B closed up 1.25 pct at 141.50. SKF said it has signed an agreement to acquire Taiwanese profile rail guide ABBA Linear Tech for an undisclosed sum.

Sandvik also closed up 2.13 pct at 120, Atlas Copco A up 0.85 pct at 237.50, and Assa Abloy B up 1.57 pct at 162.

Saab B bucked the positive market, closing down 1.50 pct at 197.50 after the Office of the Public Prosecutor in Stockholm said it has launched an investigation into alleged bribery connected to the company's lease of its JAS 39 Gripen fighter planes to the Czech Republic.

Chief Prosecutor Christer van der Kwast said he is also considering an investigation into suspected bribery in connection with the sale of Gripen fighter planes to South Africa.

Among other shares heavily traded, Scania B closed up 1.11 pct at 545, Volvo B up 1.76 pct at 577, Boliden up 0.64 pct at 157, Nordea up 0.62 pct at 112.80, and SEB A up 1.08 pct at 233.

TF.TFN-EuropeStockholm@thomson.com

sjr/lam

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