(Updating with full report)
OSLO (Thomson Financial) - Share prices closed higher, led up by Storebrand after the Norwegian government extended the deadline for rival insurer Gjensidige to increase its stake in the company, and by Hafslund.
The OSEBX Benchmark index closed 1.76 points higher at 507.89 and the OSEAX All Share index added 1.69 points to 581.85.
Total turnover amounted to 10.94 bln nkr.
Storebrand closed 2.4 nkr higher at 94.4 after the Norwegian government extended the deadline for rival insurer Gjensidige to raise its stake in Storebrand, according to dealers.
Traditionally, shareholders in Norwegian banks and insurers can only own up to 10 pct without special permission.
Mutual insurer Gjensidige, along with Icelandic bank Kaupthing, was recently given special permission by the Norwegian ministry of finance to raise their stakes in Storebrand to one fifth. While Kaupthing has since done this, Gjensidige is yet to make its move.
DnB NOR fell 0.6 to 78.
Hafslund B added 2.5 to 145. The US senate's finance committee voted in favour of a new tax on the oil sector, the proceeds of which will be used to develop renewable energy including wind power, Danish RB-Boersen news agency reported.
Dealers said this is beneficial for the group's interests in green energy through its 14.24 pct stake in Renewable Energy Corporation (REC).
However, they added, REC shed 0.5 to 216 after the firm played down reports of a longer than expected shortage of solar-grade silicon at the 'Nordic Renewable Energy' conference held in Oslo.
Orkla, which has significant exposure to the silicon industry through its Materials business, also closed lower, falling 0.75 to 107.25.
DNO rose 0.04 to 11.6 after the group said it has completed drilling its latest well in Yemen, and the well is now producing 2,548 barrels per day.
The company has also started drilling another well in the same area.
DNO has raised 445.5 mln nkr through a private placement of almost 18.6 mln shares at a price of 24 nkr per share.
While the placement was oversubscribed, the 445.5 mln nkr raised comes in at the lower end of the 427-538 mln range indicated by the firm last week, when it announced plans to spin-off its Norwegian operations into a separately-listed oil firm.
Norsk Hydro added 1.25 to 225.25, while Statoil shed 0.75 to 177.25.
Petroleum Geo-Services was up 2.75 at 166 on news it is to acquire Edinburgh University spin-out MTEM Ltd, which specialises in electromagnetic services for the oil and gas industry, for a total of 275 mln usd in cash and shares.
The Norwegian seismic group said 18 mln usd of the purchase price is to be settled in PGS shares, while the rest will be in cash on a debt-free basis.
Seadrill rose 0.75 to 131.75. According to analysts in Oslo, Seadrill is in the process of increasing its stake in Malaysian oil and gas services provider SapuraCrest Petroleum Bhd.
SapuraCrest, which already carries out its drilling activities in partnership with Seadrill, is believed to be a target for the Norwegian firm.
According to filings with the Malaysian bourse, Seadrill bought 12 mln shares in SapuraCrest on 12-15 June, taking its total holding to more than 105 mln shares, or 10.3 pct of the Malaysian firm's total issued share capital.
Analysts in Oslo said they expect the buying to continue, with Seadrill eyeing an even larger stake in the rapidly growing firm.
Prosafe was up 1.9 at 95.8 and Subsea 7 added 2.25 to 129.25.
Norske Skog rose 0.4 to 90.5. The group is launching a euro-denominated bond offering of 500 mln eur with a maturity of 10 years and coupon rate of 7 pct.
Yara International was up 3.75 at 187.5.
Among other stocks traded today, Telenor added 0.25 to 115 and Tandberg rose 2.5 to 131.25, while Schibsted was unchanged at 291. michael.delaine@thomson.com mdl/rfw COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
© 2007 AFX News
