Euro telcos to merge

May 15, 2001
Web posted at: 2245 GMT

NEW YORK (CNNfn) -- Oslo, Norway-based Telenor ASA is in merger talks with Danish counterpart Tele Danmark, press reports said Tuesday.

A merger of the two former state-owned telecommunication companies could be valued at $16 billion, the FT.com said.

Telenor's discussions with Tele Danmark could still hit bumps and a merger will not give Telenor (TELN: up $0.08 to $13.88, Research, Estimates) with the presence in Sweden it needs to advance its pan-Nordic strategy, the FT.com said.

Telenor may have to sell its 53.5 percent stake in Sonofon, the Danish mobile operator. Telenor is trying to sell the stake to Atlanta-based partner BellSouth (BLS: down $0.05 to $41.85, Research, Estimates).  

Another U.S. carrier, San Antonio-based SBC Communications (SBC: up $0.55 to $43.35, Research, Estimates), may also have to approve such a merger since it owns 41.6 percent of Copenhagen, Denmark-based Tele Danmark (TLD: up $0.05 to $17.70, Research, Estimates), the FT.com reported.

Both Telenor and Tele Danmark could not be reached for comment.

Telenor

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