Assessment commissioned of bank taken over by Swedish state

SwedenStockholm - Independent firms have been commissioned to assess the value of Carnegie Investment Bank AB recently taken over by the Swedish state, officials said Friday.

Bo Lundgren, head of the Swedish National Debt Office that took over the bank last week, said the two entities that make up Carnegie were to be sold separately but said it was unlikely a deal would be clinched before the end of the year.

The entities comprise Carnegie Investment Bank AB, and pension insurance advisor Max Matthiessen Holding AB that Carnegie took over in early 2007.

Lundgren told reporters that Price Waterhouse Coopers was to value the shares in Carnegie Investment Bank AB while investment bank Lazard was to assess the value of Max Matthiessen Holding AB shares.

According to Lundgren several companies were interested in the two entities.

Carnegie lost its operating license November 10 after the Swedish Financial Supervisory Authority (FSA) criticized the bank on several points including failing to amend faults in its oversight procedures, and giving large loans to a single client.

Carnegie has been under review by the FSA since it disclosed a writedown of 1 billion kronor (126 million dollars) over "an individual credit commitment" in its recent third-quarter report.

Carnegie is engaged in stockbroking, equity analysis, equity trading, asset management and advice on corporate acquisitions in the Nordic region, and has some 1,100 employees. (dpa)

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