Schibsted, the Nordic region's fourth largest media group and owner of Norway's paper-of-record Aftenposten, launched a 705-million-euro (943-million-dollar) take-over bid for Finnish rival Alma Media on Tuesday. "Alma Media is a perfect strategic partner for Schibsted," the Norwegian group's chief executive Kjell Aamot said in the statement announcing the bid for the Finnish company, which owns Finland's leading business daily and largest commercial television network.
"The two companies complement each other on both the professional as well as geographic level, and together they form a solid platform for further growth," he added.
The Norwegian firm offered 11.40 euros (15.24 dollars) for each of Alma's Series I shares, or a 30 percent premium compared to Monday's closing price.
Schibsted also said in a statement that it would pay 10.70 euros (14.31 dollars) for every Series II share in the Finnish company, or a premium of 14 percent compared to the last trading price the previous day.
Compared to the shares' average performance over the past 12 months, the bid offers a 55 percent and 35 percent premium respectively, Schibsted said, adding that it would finance the take-over through loans.
Following the tender, Alma's Series I shares shot up over 32 percent, trading at 11.65 euros, while its Series II stock was up 19 percent, changing hands at 11.15 euros in afternoon trading on the Helsinki bourse.
In Oslo however, Schibsted's shares fell two percent on the news, selling for 171 Norwegian kroner (27.80 dollars, 20.70 euros).
In addition to Aftenposten, Schibsted owns Norway's best selling tabloid VG, Swedish leading dailies Aftonbladet and Svenska Dagbladet, as well as the "20 Minutes" chain of free dailies across continental Europe.
The company, which also owns a third of Norway's largest commercial television network TV2, currently holds a two-percent stake in Alma, the Nordic region's ninth largest media group, while Swedish media giant Bonnier owns 33 percent of the Finnish company.
Alma controls Finland's leading commercial television network MTV3, the country's premier business daily Kauppalehti, national tabloid Iltalehti, as well as several smaller regional and local papers, and holds a 23.4-percent stake in Swedish network TV4, of which Schibsted also owns a 21.1-percent share.
The Norwegian firm, which said its bid would only be valid for a period of four weeks starting from the beginning of January and only if it gets more than one third of Alma's shares, said it would be "happy" if it only got 40 percent of the shares, but that it was clearly aiming for a majority stake.
Analysts meanwhile said the deal was sound.
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