Swedish investment bank Carnegie buys troubled competitor HQ

STOCKHOLM — Swedish investment bank HQ Bank said on Friday its competitor Carnegie would buy it after the financial supervisory authority last weekend revoked its licences, forcing it into involuntary liquidation."The board of HQ AB has decided to sell all common shares in its subsidiary HQ Bank... (and) HQ Fonder... to the Carnegie group," the company said in a statement.The deal to sell HQ Bank for 268 million kronor (29 million euros, 37 million dollars) had been approved by the Swedish Financial Supervisory Authority (FI).FI "has approved Carnegie Investment Bank's purchase of HQ Bank and HQ Funds," the agency said in a statement, insisting the sale would help secure funds belonging to the beleaguered bank's approximately 20,000 depositors.The agency stressed however that HQ for the time being officially remained in liquidation.Carnegie meanwhile said HQ Bank's operations would be integrated into its own and that HQ Fonder (funds) would become a subsidiary, adding that all of HQ's some 300 employees would move over to Carnegie."The merged company becomes the Nordic region's clearly leading independent investment bank," Carnegie said in a statement, adding that it would guarantee HQ Bank's liquidity and its clients' deposited funds.HQ Bank, which manages around 60 billion kronor (6.3 billion euros, 8.1 billion dollars), hailed the deal."The transaction means that Carnegie therefore guarantees all HQ Bank's clients obligations.... (It) assures the continued operation of the business in HQ Bank," it said.As part of the deal, Carnegie will buy all issued shares in HQ Bank for 268 million kronor, which corresponds to outstanding convertible bonds held by the bank's employees that, if HQ had declared bankruptcy, would have become worthless."Payment is in the form of a promissory note to HQ AB, pledged to the benefit of holders of the personnel convertibles," Carnegie said.Carnegie said it would also buy all issued shares in HQ Fonder from investment company Oeresund for 850 million kronor, allowing it to co

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