Questions linger over DONG and Sachs deal

As parliament continues to discuss the impending agreement that will make US investment bank Goldman Sachs a part owner of state-owned energy providers DONG Energy, some startling revelations about the deal have trickled out.

Sources close to the negotiations told Information newspaper that the Finance Ministry was actually offered a bid from the pension firm PensionDanmark that was more lucrative than the one from Goldman Sachs.

Torben Möger Pedersen, the head of PensionDanmark, would not comment on claims that the pension firm made a bid that was higher in price per stock than Goldman Sachs, but the finance minister, Bjarne Corydon (S), maintains that the Goldman Sachs bid was the best overall.

“We can’t really discuss the other bids as they are confidential and market-sensitive information that can’t be revealed to the public,” Corydon said to Information. “But there should not be a shadow of a doubt that we accepted the best overall bid.”

READ MORE: Private investment in DONG Energy finalised

Deal smells fishy 
Several experts in energy finance have contended that DONG's stock is far more valuable than portrayed by the Goldman Sachs agreement, which has the investment firm purchasing eight billion kroner worth of DONG stock, while the investment firms ATP and PFA obtain stock for 2.2 billion and 800 million, respectively.

Concerns have also been raised about Goldman Sachs being given veto rights in any changes made to DONG's leadership and strategy, even though the investment bank is only set to become a minority owner with about 19 percent of stock.

The deal, which was first announced in October last year, will drop the state’s ownership in DONG down to around 60 percent – if it passes.

READ MORE: DONG secures eleven billion kroner investment

DF could pull the plug
Enhedslisten has announced that it will attempt to prolong the agreement process and Dansk Folkeparti (DF) has said it is not ready to make a decision on the Goldman Sachs deal.

“There are many mysterious things concerning the sale of DONG and things need to be brought to light before parliament’s finance committee makes a decision in the case,” Kristian Thulesen Dahl (DF) wrote on Facebook.

According to the Finance Ministry, the Goldman Sachs agreement is expected to be approved on Thursday of next week.

TOP STORIES

Connect club

Connect Club is your gateway to a vibrant programme of events and an international community in Denmark.

Sign up here

Career

  • How internationals can benefit from joining trade unions

    How internationals can benefit from joining trade unions

    Being part of a trade union is a long-established norm for Danes. But many internationals do not join unions – instead enduring workers’ rights violations. Find out how joining a union could benefit you, and how to go about it.

  • Internationals in Denmark rarely join a trade union

    Internationals in Denmark rarely join a trade union

    Internationals are overrepresented in the lowest-paid fields of agriculture, transport, cleaning, hotels and restaurants, and construction – industries that classically lack collective agreements. A new analysis from the Workers’ Union’s Business Council suggests that internationals rarely join trade unions – but if they did, it would generate better industry standards.

  • Novo Nordisk overtakes LEGO as the most desirable future workplace amongst university students

    Novo Nordisk overtakes LEGO as the most desirable future workplace amongst university students

    The numbers are especially striking amongst the 3,477 business and economics students polled, of whom 31 percent elected Novo Nordisk as their favorite, compared with 20 percent last year.

Want to advertise your job with CPH Post?

Contact us

Jobs