Fjord1 note: Shows grueling conflict with management – pursuits

Fjord1 management refused to give out any information that the county municipality’s advisers wanted when the company was to be sold. “It’s very unfortunate,” writes advisors.

MARITIM 10/12/2015 9:50 By Tor Arne Fanghol

It is stated in a note to fylkesrådmann Tore Eriksen in Sogn og Fjordane. The document shows several points where Fjord1 scoring was on a collision course with the advisors to the largest owner, newspaper Bergens Tidende.

The note comes from the law firm Wiersholm and financial advisory DHT, which was the county municipality advisors and accounting for sales of Fjord1.

Held

The advisers describes how Fjord1 management would not give out information that would give potential buyers are grounds for putting a price on Fjord1 shares. Among the prospective buyers were also competitors of Fjord1.

“The company has given access to far less information than what the stakeholders have had a legitimate expectation to see, and in our view, gone too far in limiting access “writes advisors.

One of the core points of the case about Fjord1 sales is about why the management and board of Fjord1 AS felt that they did not come forward with their views when it came to what they thought was best for the company if Sogn og Fjordane county would sell its 59 percent stake.

• Fjord1 AS is the largest ferry operator in Norway, with the mission of Rogaland in the south to Finnmark in the north.

 

• Headquartered in Floro.

 

• The company has approximately 1,300 employees and had a turnover in 2014 of 2.3 billion. respectively.

 

• Fjord1 is owned by Sogn og Fjordane county (59 percent) and Havilafjord AS (41 percent).

 

The memorandum that was sent to the County man November 12th, shows that it was hard fronts between the advisers to the county administration and management of Fjord1. The memorandum can be read here.

Very unfortunate

The controversy was about a so-called data room where it is normally related to the sale of businesses that collected information about the company, so any buyers can grab the facts and figures that can affect how much they are interested in paying.

The conflict went so far that the counselors offered to limit who could access the information. But this went Fjord1-ahead on.

Former CEO Dagfinn Neteland commented that the reason why they refused to give out information, was that they thought this was competitively sensitive.

– We also considered this decision legally. And it was clear that we could not give out information that came our competitors to good. Our task was to protect the company’s interests, says Neteland.

He resigned when the sale became known because he would not be a department head at Fjord1.

Read the entire article on bt.no (abo ).