TietoEnator acquisition talks end

By Tarmo Virki

HELSINKI (Reuters) - Top Nordic IT services company TietoEnator Oyj (TIE1V.HE: Quote, Profile, Research) said on Thursday its talks with possible buyers had ended without any firm offers for the company, sending its shares sharply lower.

Private equity firm Nordic Capital launched a $1.7 billion bid for TietoEnator in April, but the board and top shareholders snubbed the offer as too low.

TietoEnator, whose customers include Nokia and Ericsson, has long been seen as a takeover target and after Nordic Capital's bid failed in late May TietoEnator said it was talking with several other possible suitors.

"None of these discussions has, however, resulted in any firm and actionable offers ... and therefore, active discussions with potential offers have ended," TietoEnator said.

Shares in TietoEnator fell close to 9 percent on the news, and at 1100 GMT they were 4.8 percent lower at 13.11 euros.

"The share reaction shows that there were still some investors in the market who believed in a bid, but now it is obvious that it would not go through," said Antti Saari, an analyst with eQ Bank.

Sources familiar with the matter have told Reuters earlier that private equity and real estate firm Blackstone (BX.N: Quote, Profile, Research) was talking to TietoEnator about a white-knight plan to buy the company and merge it with Norwegian computer services firm EDB Business Partner (EDBASA.OL: Quote, Profile, Research).

Blackstone and EDB declined to comment on TietoEnator's statement, but EDB's chief executive Endre Rangnes told Norwegian daily Dagens Naeringsliv, published earlier on Thursday, the talks had ended between it and TietoEnator.