Carnegie queries legality of Sweden's takeover move

STOCKHOLM (Reuters) - Swedish bank Carnegie said on Friday it was questioning the legality of the way the Swedish national debt office took over the firm's investment bank and insurance brokerage this month.

The takeover came as regulators removed the company's license on Nov. 10 due to management lapses, before reinstating it when the debt office took on ownership of the company.

The Swedish central bank had extended a credit facility to Carnegie for as much as 5 billion Swedish crowns ($608 million), and Carnegie's investment banking arm and its Max Matthiessen insurance brokerage were pledged as collateral.

Carnegie's debts to the central bank were transferred to the national debt office, which then took over the units.

"Carnegie has questioned the legal basis for the exercise of the pledge and if the National Debt Office has applied the pledge agreement correctly," Carnegie said in a statement.

"The exercise of the pledge has been done without any loan being terminated and due for payment. At the time of the exercise no valuation of the pledged shares existed."

Carnegie said that if it does not accept the debt office's valuation of the shares in Carnegie Investment Bank and Max Matthiessen, it will refer the issue to a review board, and if there is a dispute it would be settled by the courts.

Sweden's national debt office said earlier on Friday it plans to sell Carnegie's investment banking arm and Max Matthiessen as separate units.

"The debt office, with the assistance of consultants, has analysed the companies and we assess that it is best to sell the companies separately," the office said in a statement.

"Max Matthiessen is not integrated in the investment bank and the debt office also believes there is a group of buyers that are only interested in the insurance brokerage."

(Editing by Simon Jessop)