Monday August 31, 07:54 AM
UPDATE 1-Nordea says to buy Denmark's Fionia Bank
STOCKHOLM, Aug 31 (Reuters) - Nordea, the Nordic region's biggest bank, said on Monday it had signed a deal to buy state-administered Danish bank Fionia Bank (Copenhagen: AMSP.CO - news) for 121 million euros ($174 million).
Nordea said in a statement the purchase excluded the 'bad bank' portion of Fionia which fell into the hands of state administrators in February after heavy writedowns and loan losses from a property bubble that burst.
Fionia is owned by a state bank administration company called Finansiel Stabilitet that aims to sell off viable assets. Nordea said it would also be recapitalising Fionia and described the credit quality of the acquired Danish bank as 'solid'.
'By acquiring Fionia we continue our growth in Denmark and get a very strong market position in the Funen region, to the benefit of both Fionia's and Nordea's customers and our shareholders,' Nordea said in a statement.
Nordea said the deal, which covers 29 branch offices with 400 employees, was expected to have a clearly positive return on investment from 2011. The deal is subject to approval from relevant authorities, it added.
($1=.6964 euros)
(Editing by Mike Nesbit) Keywords: NORDEA FIONIA/
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