Novator calls for Elisa shake-up

23 Nov 2007

Finnish telco Elisa’s largest shareholder Novator has demanded showdown talks over the future of the telecoms group, urging its board to hold an extraordinary general meeting ‘as soon as possible’. In a statement, the Icelandic group – an investment vehicle of Thor Bjorgolfsson – said it and other major shareholders were demanding a new board of directors and a shake-up of the company’s corporate structure. Bjorgolfsson said he had grown impatient with the lack of progress at the company during the last three years. ‘We are convinced that the company is a strong and competitive telecoms company that has the capacity to grow and compete internationally,’ he said. ‘Unfortunately, we have not seen the kind of business development that we believe Elisa is capable of and, judging by the Elisa share price, nor has the stock market.’

Novator said it has on several occasions asked Elisa to split into a holding company and an operating company, but that its demands were being ignored by the board. A holding company would handle overall strategy and the group’s international expansion, while the subsidiary unit would focus on the day-to-day running of the business, it said.

Finland, Elisa Corporation