FINLAND - Sampo-Leonia, Finland's largest financial group, is set to take over Helsinki-based Mandatum Bank in a stock swap deal with a share in Sampo-Leonia offered for every five and a half shares in Mandatum.

A group of Mandatum's shareholder's, who own 39% of the stock and have 51% of the votes, support the deal. Sampo-Leonia currently has 9.7% of Mandatum's shares.

"With this transaction we are following the path set by the Sampo-Leonia merger and continue to develop a strong domestic financial group," says Jukka Härmälä, chairman of the Sampo-Leonia board.
"Mandatum adds to the investment banking, brokerage and asset management expertise of Sampo-Leonia."

The move increases Sampo-Leonia's share of the Finnish asset management market from about 11% to 15.3%.

Jouko K Leskinen, the current chief executive of Sampo-Leonia has resigned and Björn Wahlroos, chairman of the Mandatum board will take over on January 2, 2001.
Wahlroos is also the fourth largest shareholder (2.1%) in Sampo-Leonia after the latest acquisition, with the Finnish government owning a majority of the shares (40.2%).

The formal acceptance period is expected to open on January 23 and close on February 6.

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