Sweden’s Debt Office May Recoup Taxpayer Money Spent on Carnegie

The Swedish National Debt Office said it will probably recoup taxpayer money and make a “slight profit” from the takeover of failed broker D. Carnegie & Co as the current owners now plan to sell off real estate assets.

Altor Equity Partners AB and Bure Equity AB (BURE) have decided to start the sales process of the real estate company Norrvidden AB. The government is guaranteed to receive 90 percent of the profit from the sale, the debt office said today in a statement.

Carnegie took over Norrvidden when the debt office owned the bank. The debt office later sold the group to the two Swedish private equity companies. It seized Carnegie in November 2008 to recoup central bank loans after Sweden’s financial watchdog revoked Carnegie’s banking license.

The original sales price the government and the taxpayer received did not fully cover the costs of the takeover, the debt office said.

To contact the reporter on this story: Adam Ewing in Stockholm at aewing5@bloomberg.net

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net

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