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FL sells 12.7 pct Finnair stake, books loss

Mon Mar 31, 2008 12:43pm EDT

STOCKHOLM, March 31 (Reuters) - Icelandic investment firm FL Group FL.IC said on Monday it had sold a remaining 12.7 percent stake in Finnish carrier Finnair FIAIS.HE for 13.6 billion Icelandic crowns ($178 million) and would book a first-quarter loss of 1.7 billion crowns.

"The divestment of our remaining stake in Finnair is consistent to the ongoing restructuring of our investment portfolio," FL Chief Executive Jon Sigurdsson said in a statement. "After the sale, FL Group holds no shares in listed airline companies."

Sigurdsson said FL would focus on core investments such as Glitnir bank GLB.IC or holdings in insurance and property, as well as some private equity investments.

FL Group had sold an 11.7 percent stake in Finnair in December, booking a loss of 2.8 billion crowns.

Iceland's financial sector has been hard hit by global financial turmoil and balance sheet worries. FL Group posted a 63.2 billion crown loss in the fourth quarter due to huge falls in the value of its listed assets.

Reuters monitors statements from Icelandic firms and institutions on the Internet from Stockholm. (Editing by Paul Bolding)



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