Nordic Merger Mania

Despite the friendly terms of the sale, other large U.S. bidders are likely to try to top the offer, says Albert Collett, who manages $200 million for ABN Amro in Norway.

"Anything can happen now," says Collett. "Even though Tandberg's board has committed to this deal, we think others will try and come to take this company now." He sees Alcatel (ALU Quote) and Siemens (SI Quote) as the most likely potential bidders.

The announcement by AOL sent shares of other Scandinavian technology companies soaring as speculation increased about more possible acquisitions. Shares in Sweden-based Axis, a provider of professional network video products, have soared 7.5% to 100.25 Swedish kronor since Monday on speculation that the company will be acquired by Cisco (CSCO Quote).

Swedish semiconductor Micronic Laser Systems, which counts Intel (INTC Quote) and Samsung as partners, is another potential takeover target, according to Laseen. "It has a very strong product portfolio and with the share price down recently" due to adverse market conditions, "this is a good time for another tech giant to pick up the company and make a bid," he says.

Neither Laseen nor Collett have positions in these U.S. companies or in Axis or Micronic Laser Systems.

This latest round of interest in Nordic technology comes as no surprise to analysts and fund managers in the region, who have viewed these small technology companies as undervalued for a long time. The high price of oil has put the spotlight on oil and shipping companies over the last year, leaving many of these smaller tech players, which reported strong earnings in 2006, largely unnoticed.