[2] Frederik II of Denmark was unable to exploit the inner-Swedish conflict, as his treasury was drained by the costs of his German mercenary armies, on which he had relied throughout the war,[3] and the rebuilding of the Danish navy, finished by the summer of 1567, after a large part of it had sunk in a storm in July 1566.

[2] The Dano-Swedish treaty thus included the restoration of the pre-war borders between the kingdoms, except for the Swedish dominion in Estonia, established in 1561 during the Livonian War, which was to be ceded to Magnus of Holstein, brother of the Danish king.

[2] The draft was signed on 18 November 1568 by the Swedish envoys Jören Ericksson Gyllensterne (Jörgen Gyldenstiern of Fouglevig), Ture Bielke (Thure Bielcke of Salestad) and Niels Jensson (secretary), and for the Danish side by Peer Oxsse (Per or Peder Oxe of Gisselfeld, hofmester), Johan Friis (Frijs of Hesselagger, chancellor), Holger Rossenkrantzs (Holger Ottesen Rosenkrantz of Boller, governor in North Jutland), Peder Billde (Bilde of Svanholm, commander of Callundborg) and Nils Kaass (Kaas of Taarupgaard, secretary).

[2] John had his refusal backed up by a declaration from a Riksdag of the Estates summoned in Stockholm: Frederick II was to receive "powder, lead and pikes" instead of war reparations.

[2] By threatening to abdicate, Frederick II secured the riksdag's and the Danish Council's consent to new taxes, which were to finance the planned decisive blow on Sweden in the year 1570.