Tuesday, Mar 11, 2008

STOCKHOLM (Dow Jones)--Middle Eastern sovereign funds and private investment funds are closely watching Sweden's privatization program, Financial Markets Minister Mats Odell said Tuesday.

Speaking on the sidelines of a conference arranged by the Swedish Private Equity and Venture Capital Association, Odell said several funds from the region were interested in investment opportunities in Sweden and the government's planned sale of its stakes in state-owned enterprises.

"There's a big interest for investments in properties, in banks and telecoms," in Sweden. "Banks and property are assets that several of these funds are actively focusing on," he said.

In September 2006, the Swedish government outlined plans to sell its stakes in six state-owned companies, worth around $31 billion. The proceeds will be used to pay off debts, and the plans include divesting stakes in telecommunications company TeliaSonera AB (TLSN.SK) and Nordea Bank AB (NDA.SK). It also plans to sell state-owned mortgage company SBAB, Absolut vodka-maker Vin & Sprit and property company Vasakronan.

Also on the block was the government's 6.6% stake in exchange operator OMX AB (OMX.SK). OMX was sold to Borse Dubai and Nasdaq Stock Market Inc. (NDAQ) in a complex deal agreed in September for $4.9 billion.

Odell said there was particular interest in Nordea and Vasakronan.

"(The funds) are interested, and they know about these companies...in the aftermath of the Borse Dubai, OMX, Nasdaq deal," he said.

-By Jenny Clevstrom, Dow Jones Newswires; +46 8 545 130 97; jenny.clevstrom@dowjones.com

(END) Dow Jones Newswires

11-03-08 1144GMT