Hafslund has received the following announcement from Fortum Corporation:

 

The City Board of Oslo has concluded that it will not be possible to obtain a political majority for the agreement signed on May 9th, 2004 regarding the sale of the City's share in Hafslund ASA. After informing Fortum about this, the parties have decided not to present the agreement to the Oslo City Council for approval on May 26th, 2004.

 

"I regret that it was not possible to conclude the transaction, which would have given Hafslund the resources needed to develop into a stronger Norwegian company. The deal would also have further strengthened Fortum's Nordic position. We remain committed to the Norwegian market, however. As a significant shareholder of Hafslund we will continue to participate in the further development of the company", said Mikael Lilius, President and CEO of Fortum.

 

 

Oslo, 18 May  2004