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Apr-16-2008France Telecom mulls $54 billion TeliaSonera deal(topic overview)
CONTENTS:
- On the one hand it would help reduce Orange's massive debts and, at the same time, lower the holding the contentious stake the French government still retains in the carrier. (More...)
- A deal would create a giant with annual sales of 63 billion euros and allow it to compete better with rival Deutsche Telekom, which is Europe's largest telecommunications company. (More...)
- Luc Chatel, a spokesman for the French government, declined to comment. (More...)
- A France Telecom/Telia tie-up would be the second recent deal in which one former national monopoly telecoms supplier makes a move on another, after Deutsche Telekom agreed to buy a stake in Greek operator OTE. (More...)
- A merger would create the largest European telecoms company, according to the paper. [email protected] Copyright Thomson Financial News Limited 2008. (More...)
- Australia's Crown Ltd (CWN.AX: Quote, Profile, Research ) said it has sold its 25.4 percent stake in Monarchy Enterprises Holdings B.V., the owner of Hollywood film studio New Regency Productions, for US$189.4 million. (More...)
- Last year, Spain's Telefonica SA (TEF) took a stake in Telecom Italia SpA (TI) through a holding company. (More...)
- The source close to the company said an acquisition of TeliaSonera could fit with the second objective. (More...)
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On the one hand it would help reduce Orange's massive debts and, at the same time, lower the holding the contentious stake the French government still retains in the carrier. Unsurprisingly, the proposed deal would seem to do rather more for Orange than it would for TeliaSonera and anonymous sources quoted by Le Figaro say that the French government has already given its blessing to the putative takeover. Any such deal would be in direct contradiction of the strategy that France Telecom (FT) has been following so assiduously over the past couple of years whereby, as the operator's fixed-line revenues continue to atrophy, the focus has been on the provision of Internet services in its domestic and regional European market (the company recently bought the Spanish ISP Ya.com) and the expansion of overseas interests in emerging markets such as Turkey, Kazakhstan and Tajikistan where there is money still to be made from basic telecoms services. FT has recently also acquired companies in Kenya and Jordan to add to its foreign portfolio. In an analyst comment, Rob Gioyens of Dexia Securities said, "This doesn't seem to fit with the stated merger and acquisition goals of France Telecom and it's anything but a pure emerging markets play". [1] France Telecom, which trades under the Orange brand, was not immediately available for comment. The move would make the company, Europe's number three operator of both fixed and mobile services by market value, the new number one, overtaking Deutsche Telekom. Le Figaro said the operator was weighing the takeover of its Stockholm-based peer with the French state, which has a stake in the former monopoly operator that would be diluted by the deal.[2]
French newspaper Le Figaro said a deal could be valued at a minimum 34 billion euros ($54 billion) and would involve complex political negotiations. That's because France Telecom is 27%-owned by the French government and the Swedish and Finnish states have respective 37% and 13.7% stakes in TeliaSonera. France Telecom has the backing of the French government for the operation and would use stock to make the purchase, Le Figaro reported, without citing its sources.[3] PARIS, Apr. 16, 2008 (Thomson Financial delivered by Newstex) -- France Telecom (NYSE:FTE) and the French government, a key shareholder, is mulling the acquisition of Scandinavian telecoms company TeliaSonera (PINKSHEETS:TLSNF) AB through an exchange of shares in a deal that could be worth 30 billion euros, the daily Le Figaro reported, without citing sources.[4]
A report in French daily Le Figaro said France Telecom has the backing of the French government, which owns around one third of the company, to buy TeliaSonera and create Europes largest telecoms company. The report, which did not reveal the source of its information, said TeliaSonera is valued at 34 billion (US$53.82 billion) based on its market value and debt, and France Telecom would pay in stock.[5]
In case of a takeover, the French government's stake in France Telecom would be diluted and the Swedish and Finnish governments could join the company's board, according to the Le Figaro report.[3] The French government holds 27.4% of France Telecom's capital and the Swedish and Finnish governments own 37.3% and 13.7% of TeliaSonera respectively. The Swedish government is selling off its stake in Teliasonera as part of its $33.8 billion privatization drive, but so far has sold off only a small part of its holding.[6] The French government holds 27.4 percent of France Telecom, and the Swedish and Finnish governments own 37.3 percent and 13.7 percent of TeliaSonera respectively. The Swedish government is selling off its stake in Teliasonera, although no timetable has been set.[5] The unsourced rumour sent TeliaSonera shares up by around nine percent on Wednesday, and France Telecom shares down by more than five percent. Merrill Lynch analysts said the move would present political challenges given the French government's stake in France Telecom and the fact that the Finnish and Swedish governments both have significant holdings in TeliaSonera.[7]
The newspaper said France Telecom and the French government, which holds a 27 percent stake in the group, were considering an acquisition of the Scandinavian company in a deal that could be worth 30 billion euros.[8] LONDON - A new wave of consolidation within the European telecom sector could be about to break out, and former national operators are up for grabs. A month after Deutsche Telekom snapped up a stake in Greece's Hellenic Telecom, French media reported Wednesday that France Telecom was mulling a 30 billion euro ($47.5 billion) bid for Sweden's TeliaSonera.[9] Not only would it be the biggest deal put together by France Telecom since it spent US$55 billion on the acquisition of Orange back in 2000, but it would also come under intense scrutiny on the part of the European Commission as well as the regulators in Finland, Sweden and France. TeliaSonera, Sweden's biggest operator, has a market value of 201.2 billion kroner (that's some $34 billion) and is partially-owned by both the Swedish state (with 37.3 per cent) and Finland (with 13.7 per cent).[1]
Analysts began considering the pros and cons of a possible deal as the speculation weighed on France Telecom's stock and sent TeliaSonera shares sharply higher. A France Telecom spokeswoman declined to comment explicitly on the report but highlighted the merger and acquisition objectives the group outlined in February, which include reinforcing its footprint in emerging markets, and strengthening its activities in Western Europe when appropriate.[6] Thomson Financial reports that a France Telecom spokesman declined to comment on an unsourced report in the French daily Le Figaro that FT is considering a possible share swap deal to take over the Scandinavian group and create Europe's largest telco.[10]
PARIS, April 16 (Reuters) - France Telecom (FTE.PA: Quote, Profile, Research ) is studying a possible takeover of Sweden's TeliaSonera (TLSN.ST: Quote, Profile, Research ) through a share swap that could rekindle a consolidation wave in the European sector, Le Figaro newspaper reported on Wednesday.[11] STOCKHOLM, April 16 (Reuters) - The Swedish government declined to comment on Wednesday on a newspaper report that said France Telecom (FTE.PA: Quote, Profile, Research ) was studying a possible takeover of Nordic telecoms leader TeliaSonera (TLSN.ST: Quote, Profile, Research ).[12]
PARIS, April 16 (Reuters) - The French government will express its view on the issue of any potential bid by France Telecom (FTE.PA: Quote, Profile, Research ) for Sweden's TeliaSonera (TLSN.ST: Quote, Profile, Research ) when the time comes, government spokesman Luc Chatel said on Wednesday.[13]
According to the report in Le Figaro, France Telecom would swallow up TeliaSonera through a share swap, a plan supported by the French government.[6] An announcement could be weeks away, according to the report in Le Figaro newspaper. Both France Telecom (nyse: FTE - news - people ) and TeliaSonera (other-otc: TLSNF - news - people ) declined to comment on the report, but shares in TeliaSonera jumped 5.1%, or 2.30 Swedish kronor (39 cents), to 47.10 Swedish kronor ($7.94), in Stockholm on Wednesday morning.[9] France's Le Figaro newspaper reported on Wednesday that France Telecom, which trades under the Orange brand, was considering a possible share swap to take over the firm. "We never comment on these kind of rumours," Finance Ministry spokeswoman Mia Widell said.[12] Sweden'''s Biggest telecom operator TeliaSonera is rumoured to be the subject of a takeover by France Telecom, which trades under the orange brand. Both companies had no immediate comment on the story, carried in France'''s Le Figaro on Wednesday.[14] STOCKHOLM, Apr. 16, 2008 (Thomson Financial delivered by Newstex) -- TeliaSonera (PINKSHEETS:TLSNF) AB reiterated it is interested in expanding its footprint in Eurasia, and refused to comment on a report in Le Figaro saying that France Telecom (NYSE:FTE) unit Orange is planning an 30 billion euro all-share offer for the Nordic telecoms operator.[15] PARIS, Apr. 16, 2008 (Thomson Financial delivered by Newstex) -- A France Telecom (NYSE:FTE) spokesman declined to comment on a report that the company is mulling an all-share acquisition of Scandinavian telecoms company TeliaSonera (PINKSHEETS:TLSNF) AB for up to 30 billion euros.[16] PARIS, Apr. 16, 2008 (Thomson Financial delivered by Newstex) -- A source close to France Telecom (NYSE:FTE) told Thomson Finanicial News that its merger and acquisitions policy could accommodate the acquisition of TeliaSonera (PINKSHEETS:TLSNF), while France Telecom itself confirmed the policy remains in force but declined to comment on a report that it is mulling such a move.[17]
"What would make it more difficult are the various parties around the table, not only the French government but also the Swedish and Finnish ones.'' France Telecom in the past two years expanded in emerging markets and Internet services to make up for a slump in fixed- line phone sales in its home market, buying assets in Kenya and Jordan as well as Spanish Internet-access provider Ya.com. "This doesn't seem to fit with the merger and acquisition goals of France Telecom,'' Goyens said. "It is not a pure emerging-markets play.''[18] "Just look at the merger between Telia and Sonera, it has had all kinds of problems," said Cansfield, who doesn't think France Telecom will be able to buy TeliaSonera. The Swedish government is in the process of selling its different stakes in a number of previously state-owned companies. It just sold Vin & Sprit, owner of the Absolut brand, to Pernord Ricard, another French company.[19] The French government owns 26.69 percent of France Telecom. A merger would create the largest European telecoms company, according to the paper, which also said France Telecom has rebranded itself as Orange, the name it has used for its mobile phone operations.[4] A merger would create the largest European telecoms company, according to the paper. Separately, France Telecom said it will retain its name for the listed company but will progressively rebrand its operations and products to the name Orange, which was used initially for its mobile phone activities.[16]
A deal would create a giant with annual sales of 63 billion euros and allow it to compete better with rival Deutsche Telekom, which is Europe's largest telecommunications company. Goldman Sachs analysts told clients in a note published Wednesday that sizeable cost savings are hard to envisage as France Telecom is already a "scale player" and its only overlapping market with TeliaSonera is Spain where they would face uncertainty regarding licenses. It noted, however, that a deal would be positive for the sector, especially for smaller players with en emerging-market presence such as Telenor, Telekom Austria and potentially Portugal Telecom. [3] France Telecom fell 3.6%, or 82 euro cents ($1.29), to 21.38 euros ($33.87), in Paris. Such a deal would transform France Telecom into Europe's third-largest operator of fixed and mobile services, with a market capitalization of around $125 billion, overtaking Deutsche Telekom. It would still be trumped, however by Telefonica, which has a market cap of $139 billion, and Vodafone, at $157 billion.[9]
France Telecom fell 6 percent in Paris trading. TeliaSonera has a market value of about 220.5 billion kronor ($37.2 billion), and buying the company would be France Telecom's largest deal since its 2000 purchase of Orange Plc for 27.8 billion pounds ($54.5 billion).[18]
The acquisition would give France Telecom access to around 115 million clients of TeliaSonera, largely in Scandinavia, and a company with an annual turnover of 96.3 billion Swedish kronor ($16.2 billion).[9]
April 16 (Bloomberg) -- TeliaSonera AB, Sweden's largest phone company, rose the most in more than five years in Stockholm trading after Le Figaro reported France Telecom SA is studying a possible takeover offer.[18] French daily Le Figaro claimed in its Wednesday edition that France Telecom is looking into buying Finnish-Swedish telecommunications operator TeliaSonera.[20] Speculation over a France Telecom move on TeliaSonera was sparked by an unsourced report in Wednesday's edition of Le Figaro.[8]
PARIS (AFP) — France Telecom shares were sharply lower Wednesday as investors were unsettled by reports the former French monopoly planned a 30 billion euros (47.5 billion dollars) bid for TeliaSonera, a Swedish-Finnish telecom. "This is scaring the market a bit. it's a major move, France Telecom is still in debt and it's hard to see the strategic benefits of such a move," said one Paris-based dealer.[8] Shares in TeliaSonera (Telia) rose the fastest in more than three years on the Stockholm bourse following a report that France Telecom (FT) is studying the possibility of launching a takeover bid for the Swedish telecoms group.[10] There is no way FT/Orange could mount an aggressive takeover bid for TeliaSonera and any deal will be entirely dependent on goodwill between the two parties and the appointment to the FT board not only of TeliaSonera executives, but also of representatives of the Finnish and Swedish governments. As news of the possible takeover spread, TeliaSonera shares (that hitherto had declined in value by 22 per cent so far this year) rose by 6.9 per cent on the Stockholm Stock Exchange whilst, on the Paris Bourse, FT shares fell by 2.8 per cent, adding to the 9.8 decline already recorded since January 1 this year.[1]
France Telecom has French government backing to buy TeliaSonera and would pay with stock to create Europe's largest telecommunications company, the newspaper said, without saying where it got the information.[18] Sweden's Financial Markets Ministry spokeswoman Mia Widell declined to comment. "France Telecom, which is in a very good financial situation, is obviously studying all opportunities in Europe and in emerging markets, as long as they would create value,'' said Bruno Bezard, head of the French state shareholding agency, which manages the government's France Telecom stake.[18] France Telecom's policy is "dynamic management of our business portfolio'' with the goal of a greater presence in emerging markets, strengthening businesses in Western Europe and adding competencies in key areas, said Beatrice Mandine, a spokeswoman for France Telecom. She declined to comment directly on the report.[18]
The move would create Europe's largest telecoms company, it added. Both France Telecom and TeliaSonera refused to comment on the report.[8] LONDON (Dow Jones) -- France Telecom is considering an all-stock bid for TeliaSonera, Sweden's largest telecommunications company, according to a media report Wednesday.[3] PARIS -- France Telecom SA is considering a bid to acquire TeliaSonera AB, Sweden's largest telecommunications company, according to a person familiar with the matter.[21]
The lack of geographical overlap between the two operators reduces the risk of antitrust concerns, but also means potential synergies are weak, Goyens said. Dexia's Goyens, who has an add rating on both stocks, noted that TeliaSonera is nonetheless mired in restructuring efforts in its fixed and mobile operations in Sweden and Finland through 2009, meaning France Telecom would acquire a "restucturing story" that would add operational complexity to any tie up.[6] France Telecom is considering acquiring TeliaSonera in a stock swap worth between ''20 billion and ''34 billion ($53.68 billion), according to published reports.[19] "We're surprised, as France Telecom said it would favor emerging markets to reinforce growth,'' said Benoit de Broissia, an analyst at Richelieu Finance, which manages $6.3 billion including France Telecom shares. "From a strategic point of view, the stock market isn't welcoming this. It would indicate an offer in stock, which would be strongly dilutive.''[18] In February, France Telecom said it wanted to expand in emerging markets and Western Europe. TeliaSonera would provide France Telecom access to emerging market growth through its assets in Eastern Europe and Turkey, Dexia analyst Rob Goyens said.[5] Taking control of TeliaSonera would give France Telecom increased exposure to emerging market growth through the group's assets in Eastern Europe and Turkey, said Dexia analyst Rob Goyens.[6]
Besides giving it a huge presence in Northern Europe, buying TeliaSonera would help France Telecom to expand in Russia, Eastern Europe and Turkey, according to John Strand, mobile analyst at Strand Consulting.[19]
Analysts said the cost-savings from the deal would be limited as there was little geographical overlap and it would mark a stark change in the French telecoms operator's strategy. "This rumour would be a real change in France Telecom's acquisition policy for 2008 as it announced just a few acquisitions in some emerging markets," Cheuvreux said in a note.[11] The French giant "will not undertake any initiative which will not create value for shareholders or which will modify the commitments regarding our mid-term debt-to-Ebitda ratio and our cash-return policy," the spokeswoman said. France Telecom shelled out tens of billions of euros on acquisitions, including the U.K.' s Orange PLC, at the start of the current decade, sending its debt soaring.[6] A purchase of TeliaSonera would be France Telecom's largest acquisition since it bought Orange in 2000 for 27.8 billion pounds.[3]
A spokeswoman for France Telecom, which trades under the Orange brand, had no immediate comment. The French government also declined to comment saying it would express its view when the time comes and adding that the subject had not been raised at a cabinet meeting.[11] The French government also holds a 26.7% stake in France Telecom. Thomson Financial and Reuters contributed to this article.[9] The French government, which owns 27.4 percent of France Telecom, remained similarly tight-lipped.[7]
If France Telecom wanted to buy TeliaSonera it would also have to contend with the Finnish government, which owns about 14 percent of the company.[19] France Telecom shares were down nearly 6 percent euros at 20.88 euros by 1025 GMT while TeliaSonera soared 8.71 percent.[11] Shares in TeliaSonera leapt in value on Wednesday on a report that France Telecom was planning a bid for the Swedish-Finnish telephone operator.[7] France Telecom shares fell 3.9% in Paris late morning trading. France Telecom, like many other European incumbent telecom operators, has been looking to enter fast-growing markets beyond its borders to offset slower growth at home. It already has operations in Spain, Poland, the U.K. and several Eastern European countries. It has recently bought assets in Kenya and Jordan as part of a strategy to build its presence in Africa and the Middle East.[3] Shares in France Telecom fell 5.3 percent to 21.02 (US$33.27) in afternoon trading.[5]
France Telecom dropped 3.5 percent. Both TeliaSonera and France Telecom declined to comment.[22] France Telecom is yet to comment on the claims while TeliaSonera has declined to comment outright.[20]
A takeover of TeliaSonera by France Telecom would follow other recent deals between European incumbents.[6] "Because of continued price pressure, scale of business is necessary for operators," said Strand, who thinks a deal between France Telecom and TeliaSonera is very realistic. A merger of this size also comes with considerable risks.[19] Neither France Telecom nor TeliaSonera, which is the dominant telecom in Sweden and Finland, commented on a possible deal.[19] The paper said a deal could only be concluded if there was agreement between the various states - France has 27.3 percent of France Telecom while Sweden owns 37.3 percent in Telia and Finland 13.7 percent.[14]
The deal would make France Telecom the largest mobile and landline operator in Europe, measured in market value.[20] While access to a new market where it has almost no exposure could make sense, Scandinavia is unlikely to be France Telecom's top priority. "I wouldn't have thought a deal like this would be at the top of France Telecom's agenda," said Borscheid.[9]
France Telecom has a market capitalisation of 57.7 billion euros ($91.38 billion) and Telia's is 202 billion Swedish crowns ($34 billion), according to Reuters data, which would give the combination a market value of $125 bilion - ahead of DTel's $76.6 billion.[2] At 13.20 p.m. (1120 GMT), France Telecom was down 4.55 percent at 21.19 euros while the broader Paris market was up 0.64 percent.[8] France Telecom fell 1.14 euros to 20.86 euros in Paris, bringing the year-to-date's slide to 15 percent.[18]
A France Telecom spokesperson was not immediately available for comment. Sweden's government has said it plans to sell assets to cut its debt.[3] According to Le Figaro, France Telecom is looking into making the bid jointly with the state of France.[20] The potential deal comes at a time when the European telecom sector has been going through a period of consolidation, as bigger firms search for scale and growth in the mostly mature markets of Europe. The French newspaper Le Figaro reported Wednesday that such.[21] The French newspaper Le Figaro reported Wednesday that the deal could be valued at a minimum ''34 billion.[19]
According to the French newspaper Le Figaro, the former French monopoly was planning a 34 billion euro bid for TeliaSonera.[7] The report that it is mulling the acquisition was in the daily Le Figaro, which valued the potential deal at 30 billion euros.[17]
The French broadsheet newspaper Le Figaro reports this morning that Orange is looking to do a share-swap buy-out of TeliaSonera that, were it to go ahead, would effectively kill two birds with one stone.[1] The report, in the daily Le Figaro, did not cite sources. It also said a key shareholder, the French government, is also studying the matter.[16] Le Figaro also said the French government, which owns 27.6% of FT, is also studying the matter.[10]
Luc Chatel, a spokesman for the French government, declined to comment. The government "will communicate when the time comes,'' he told reporters in Paris today. [18] "The government will express itself when the time comes," Chatel said. Mia Widell, a spokeswoman for the Swedish government, declined to comment on "market speculation," adding that the government has the goal of selling its assets although no timetable has been set.[6] In Stockholm, a spokeswoman for TeliaSonera had no comment on the report and the Swedish government also declined comment.[11]
TeliaSonera is owned 37.3 percent by the Swedish government and 13.7 percent by the Finnish government.[8]
Holdings earmarked for sale include stakes in Nordea Bank AB, TeliaSonera and real estate company Vasakronan AB. Sweden raised 18 billion kronor selling an 8 percent TeliaSonera stake last year. "Operators that have the guts can do interesting transactions in this market,'' said Rob Goyens, an analyst at Dexia Securities, in a telephone interview. "It might not be totally illogical but it may not be quite the acquisition that everyone expected.''[18] TeliaSonera is also in a dispute with Alfa over control of Russia's OAO MegaFon, Russia's third-biggest mobile-phone company in which it has a 35.6 percent stake.[18]
A France Telecom/Telia tie-up would be the second recent deal in which one former national monopoly telecoms supplier makes a move on another, after Deutsche Telekom agreed to buy a stake in Greek operator OTE. [2] Deutsche Telekom AG (DT) recently agreed to buy into Hellenic Telecommunications Organization SA (OTE), Greece's largest telephone company, which is known as OTE. "I think France Telecom is absolutely in the mood to look into European consolidation," said a banking source with knowledge of the sector.[6]
Input from France Telecom would also be helpful to TeliaSonera, especially in the enterprise services market, according to Katja Ruud, research director at Gartner.[19] The policy involves the 'dynamic management of our business portfolio to support the growth of the group,' a spokesman said. He added that France Telecom will not take any actions that do not create value for shareholders or that modify commitments on its medium-term debt-to-EBITDA ratio or its dividend policy. He said the mergers policy has three objectives.[17] France Telecom "will not undertake any initiative which will not create value for shareholders, or which could modify the commitments made regarding our mid-term debt-to-Ebitda ratio and cash-return policy,'' Mandine said.[18]
The move would turn France Telecom into Europe's second largest fixed and mobile operator in terms of sales and give it a foothold in the Nordic countries, Russia and Turkey where it has long been keen to expand.[11] The move would signal a return to full force for France Telecom, which nearly collapsed under heavy debts after it had bought Orange and Mobilcom at the height of the telecom and Internet bubble.[2]
On the revenue front, TeliaSonera boasts an operating margin of 27 per cent, whilst Orange struggles to maintain 10 per cent. It is the policy of Sweden's current coalition government to sell-off at least 200 billion kronor's worth of state assets by 2010 as it seeks to reduce debt and the step back from long-established tradition of state intervention in the running of the economy.[1] The Swedish government has said it plans to sell shares in Telia, which has a market value of SEK201.2 billion (USD33.8 billion), as part of plans to sell state assets worth at least SEK200 billion by the end of 2010 to cut debt.[10] The Swedish state, which holds a 37.3 percent share, also declined to comment. However Sweden did say last year that it wanted to sell off its share of the company.[7] The speculation boosted TeliaSonera shares, though. At 1124 GMT, they were up 8.7% or SEK3.90 at SEK48.70, in a broadly higher Swedish market. Company Web sites: www.francetelecom.com www.teliasonera.com -By Jethro Mullen, Dow Jones Newswires; 33 1 4017 1738; [email protected] (Olivier Hensgen and Alice Dore in Paris and Adam Ewing in Stockholm contributed to this report.)[6]
At 1115 GMT, shares in the company were down EUR1.05, or 4.7%, to EUR21.15 compared with an 0.7% rise in France's benchmark CAC-40 index.[6]
A merger would create the largest European telecoms company, according to the paper. [email protected] Copyright Thomson Financial News Limited 2008. [15] Consolidation between European carriers has heated up lately: Deutsche Telecom is close to buying Greek operator OTE and reports of a possible deal between Telefonica and Telecom Italia have also been floating around.[19] A tie-up is "possible," one analyst said, adding: "I don't like the sound of it." Other analysts were more skeptical, suggesting the report in Le Figaro "lacked substance."[6]
Australia's Crown Ltd (CWN.AX: Quote, Profile, Research ) said it has sold its 25.4 percent stake in Monarchy Enterprises Holdings B.V., the owner of Hollywood film studio New Regency Productions, for US$189.4 million. Wells Fargo & Co (WFC.N: Quote, Profile, Research ), the fifth-largest U.S. bank, said its unit would acquire the account relationships of Citibank's (C.N: Quote, Profile, Research ) customer households in six northern Nevada and two California Sierra Foothills communities. [23] Technology shares were among the biggest gainers, with Nokia (NOK1V.HE: Quote, Profile, Research ) up 2.9 percent and Infineon (IFXGn.DE: Quote, Profile, Research ) up 6.8 percent. After the bell on Tuesday, Intel Corp (INTC.O: Quote, Profile, Research ) posted revenue just ahead of Wall Street's expectations and stuck to its full-year profit margin target, driving its shares up 7.4 percent in extended trading.[22]
LVMH (LVMH.PA: Quote, Profile, Research ), the world's biggest luxury goods group, surged 4.9 percent after it reported a 12 percent rise in comparable first-quarter sales and said it expected higher 2008 earnings.[22] PARIS, April 16 (Reuters) - European stocks rose early on Wednesday, extending a recovery from the previous session as Intel's (INTC.O: Quote, Profile, Research ) outlook eased worries over corporate earnings and energy stocks tracked buoyant crude prices.[22]
April 16 (Reuters) - The following bids, mergers, acquisitions and disposals involving European, U.S. and Asian companies were reported by 0400 GMT on Wednesday.[23]
TeliaSonera was formed from merger of the incumbent Swedish and Finnish operators in 2002.[14] TeliaSonera was formed in 2002 by the merger of Sweden and Finland's incumbent operators.[9]
In today's climate operators can't afford to get bogged down in a merger, according to Ruud. The concept of consolidation is valid, but they are also incredibly complex, according to Mike Cansfield, telecom strategy practice leader at Ovum.[19]
Last year, Spain's Telefonica SA (TEF) took a stake in Telecom Italia SpA (TI) through a holding company. [6] The governments of Sweden and Finland hold a 37.3%, and 13.7% stake in the company respectively.[9]
TeliaSonera spokesman Ola Kallemur declined to comment and referred questions to Sweden's government.[18]
Part of that programme is the sale of more TeliaSonera shares after eight per cent went on the market in 2007 and raised 18 billion kronor.[1] TeliaSonera has about 115 million clients and had turnover of 96.344 billion Swedish crowns in 2007. It employed 31,292 staff at end 2007 and said in February it planned to cut 2,900 jobs to save five billion crowns.[14] TeliaSonera stock was up 8.9 percent at 48.80 Swedish kronor (5.19, US$8.27).[5] TeliaSonera rose 5.20 kronor to close at 50 kronor in Stockholm. The stock has lost 13 percent this year.[18]
The source close to the company said an acquisition of TeliaSonera could fit with the second objective. [17]
SOURCES
1. TelecomTV - TelecomTV One - News
2. France Telecom studies TeliaSonera takeover-report - Forbes.com
3. France Telecom Reportedly Weighs $54 Billion TeliaSonera Bid
4. France Telecom mulls acquisition of TeliaSonera in 30 bln eur deal - report
5. Reports of telecoms merger send TeliaSonera shares soaring, France Telecom dropping - International Herald Tribune
6. Actualit' de la bourse sur Telefonica - TF : interviews, rumeurs de march's, analyses, dossiersEasyBourse
7. YLE News
8. AFP: France Telecom shares hit by Teliasonera bid report
9. TeliaSonera May Ring France Telecom's Bell - Forbes.com
10. Swedes, French decline to comment on FT-Telia takeover possibility: CommsUpdate : TeleGeography Research
11. UPDATE 6-France Telecom studies TeliaSonera bid -report | News | Hot Shares | Reuters
12. CORRECTED - Sweden has no comment on TeliaSonera report | Industries | Technology, Media & Telecommunications | Reuters
13. France defers comment on F.Telecom/TeliaSonera | Markets | Markets News | Reuters
14. Sveriges Radio International - English -- Engelska
15. TeliaSonera says interest lies in Eurasia, wont comment on Orange speculation
16. France Telecom wont comment on report mulling TeliaSonera acquisition
17. France Telecom acquisition of TeliaSonera would fit with merger policy - source
18. Bloomberg.com: Europe
19. PC World - Business Center: Reports: France Telecom Considers Buying TeliaSonera
20. NewsRoom Finland
21. Free Preview - WSJ.com
22. Techs, oil, banks fuel gains in European stocks | Markets | Markets News | Reuters
23. Deals of the day -- mergers and acquisitions | Funds | News | Reuters
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