The Financial Supervisory Authority of Norway has launched an investigation into whether Icelandic investment companies Exista and Kaupthing Bank colluded to avoid Norwegian law on shares capital limitations in financial companies.
Exista and Kaupthing Bank hold an almost 26 percent stake in the Norwegian insurance company Storebrand, Morgunbladid reports.
Exista holds a 5.6 percent share and Kaupthing Bank had been granted permission to purchase a 20 percent share as an exemption. The indirect capital share held by Exista, which is Kaupthing Bank’s largest shareholder, is thereby almost 26 percent.
The Financial Supervisory Authority of Norway has sent a letter to both companies demanding answers on how they are interrelated and to find out whether they had consulted with one other before purchasing shares in Storebrand.
If the Financial Supervisory Authority concludes that Kaupthing Bank’s and Exista’s shares can be considered one share, the companies are obligated to either apply for permission to hold such a large stake or sell part of it so that their combined stake in Storebrend does not exceed 20 percent.