UPDATE 3-TietoEnator owners with blocking stake oppose bid

(Adds details, quotes, updates shares)

By Tarmo Virki

HELSINKI, May 16 (Reuters) - Finnish shareholders with a total holding of more than 10 percent in TietoEnator (TIE1V.HE: Quote, Profile, Research) said on Friday they would not accept a 1.08 billion euro ($1.67 billion) takeover offer from Sweden's Nordic Capital.

Nordic Capital's offer was thus set to fail, analysts said, as the private equity firm, which has extended to May 23 its bid of 15 euros a share, has said its offer is conditional on 90 percent of shareholders accepting it.

Nordic Capital would also need to own more than 90 percent of shares to force out minority shareholders.

"We made clear that we have well over 10 percent of shares," private investor Pekka Viljakainen, who owns a 0.9 percent stake in TietoEnator, told Reuters.

Shares in TietoEnator, the top Nordic IT services company, were 0.9 percent lower at 16.07 euros by 0958 GMT, while the DJ Stoxx European technology share index was up more than 2 percent.

"Now Nordic Capital has to raise its offer or there would need to be other bidders. I see neither option likely in the near term," said eQ Bank analyst Antti Saari.

Finnish mutual insurer Varma said it and three other institutional owners -- OP-Pohjola group, Society of Swedish Literature in Finland and the State Pension Fund -- holding a combined 8.7 percent, opposed the bid.