Wednesday, 29 June 2011

Hurtigruten illegal state aid

EFTA surveillance authority has deemed that the extra compensation that Norwegian transport corporation Hurtigruten ASA (OSE: HRG)received from Norwegian State does not comply with EEA (European Economic Area) Agreement. The desicion means that Hurtigruten should re-pay the overcompensation to the government.

The investigation was started last year. Hurtigruten says it is surprised with the ruling, given the extra measures that Norwegian government took to make sure the extra payment was lawful and plans to appeal. The company says it is unsure of the amount of additional compensation that is in breach of the rules of state aid. No matter what, the amount appears to be very meaningfull for the company’s fortunes. The stock shed nearly 5%.

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