The not-so-intuitively-named TietoEnator Oyj, a Nordic computer-services provider, just got the bid of its life to the tune of $1.7 billion from a cash-flush Swedish suitor. So why is it turning its nose up?

TietoEnator Oyj, the biggest Nordic computer-services provider, received an unsolicited 1.1 billion- euro ($1.7 billion) takeover bid that it dismissed as too low from Swedish private-equity firm Nordic Capital.

Nordic Capital offered 15.50 euros for each TietoEnator share, it said in a statement today. The bid is 38 percent higher than the closing price yesterday. Nordic Capital plans to make Harri Koponen, a former board member at Swedish telephone company TeliaSonera AB, executive chairman of TietoEnator.

TietoEnator, whose customers include Nordea Bank AB and Siemens AG, reported its first quarterly loss in three years last month on costs to cut jobs and writedowns. The company is eliminating as many as 800 positions and shifting workers to lower-cost locations. Tieto aims to seek ``alternatives'' to the bid, which it said doesn't reflect the company's true value.

``I expect that a competing bid will come in,'' said Michael Schroder, an analyst at Kaupthing Bank in Helsinki with a ``buy'' rating on the stock. ``They've had problems for a long time, but they've made great efforts to turn the business around.''

The shares of the Espoo, Finland-based company rose as much as 4.59 euros, or 41 percent, to 15.86 euros, indicating investors expect a higher bid. Before today, the company's shares had lost half their value in the last 12 months. They closed at 11.27 euros yesterday.

`Attractive Proposition'

Nordic Capital has investments in the automotive industry, including car-components makers Finnveden AB and Plastal-DNK. Other holdings are health-care services provider Capio AB and pharmaceuticals company Nycomed. The private-equity firm already worked with TietoEnator when it bought the Finnish company's stake in Personec Group for 22 million euros in cash in 2006.

``This offer represents a very attractive proposition for TietoEnator's shareholders both from a value and certainty perspective,'' Nordic Capital Partner Robert Furuhjelm said in the statement.

Koponen left the position as deputy chief executive officer at TeliaSonera, Sweden's largest phone company, in 2004 following a disagreement with then Chief Executive Anders Igel on strategy. The Stockholm-based company ousted Igel last year.

``One strong owner and being delisted from the market means top management can keep a full focus on clients and markets instead of having to deal with quarterly reports and road shows,'' Koponen said in a telephone interview. ``They will get straight directions from the owners.''

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