Nord Pool (the Nordic Power Exchange) and Oslo Børs (OB) currently have agreements with different organizational units of NOS. Nord Pool's and OB's agreements with NOS expires during the coming two years. Nord Pool operates marketplaces for trade in electric power contracts and financially settled power derivatives. Oslo Børs operates marketplaces for trade in shares, bonds, and derivatives. NOS delivers clearing and settlement services to both Oslo-based exchanges; most NOS revenues are generated from activities on behalf of Nord Pool and Oslo Børs.
Several alternatives are under consideration by the two exchanges, now that they are jointly assessing their relationships with NOS. One alternative is to present a joint tender to buy out all NOS shareholders.
As part of their evaluations, Nord Pool and Oslo Børs are requesting NOS for a dialogue in order to obtain access to information beyond what is made public in the company's annual reports and other documentation. Nord Pool and Oslo Børs believe that a possible by out of NOS shareholders may imply a consolidation of the clearing services in Norway, and in the long run create a reasonable industrial solution for important parts of the Norwegian market for securities. For the trade in power contracts a buy out will imply a consolidation of clearing services for all Nordic countries.
Nord Pool and Oslo Børs consider the current price of NOS shares to be relatively high. Accordingly, the per-share price offered in any joint buy out would not exceed the current market price of NOS stock.
NOS shares trade in the OTC market of the Association of Norwegian Stockbroking Companies. Nord Pool currently owns 20% of NOS ASA shares. Oslo Børs has no NOS shareholding.
