Norway’s prosecutor for economic crimes said Ola Rollen, chief executive of Hexagon, was arrested in Sweden last Wednesday and will be held in custody until next Saturday.

Hexagon, which makes technology used to design, measure and position objects, has a market capitalisation of $14bn on the Stockholm stock exchange. Its shares fell 5 per cent on Monday morning after news of the arrest of Mr Rollen, who has been chief executive for the past 16 years.

The company said that Robert Belkic, Hexagon’s chief finance officer, would become acting chief executive during Mr Rollen’s detention.