France Telecom says potential TeliaSonera takeover represents “strategic opportunity”

April 18, 2008 – France Telecom has said that the recently floated possibility of a takeover of Swedish incumbent telco TeliaSonera represents a “strategic opportunity”, following stock market fears that the deal could be risky and erode shareholder value.

Gervais Pellissier, Finance Director of France Telecom, commented earlier today: “We believe TeliaSonera represents a strategic opportunity.  Critical mass is an all-important factor.  France Telecom and TeliaSonera are complementary, share a common strategic vision and both have significantly transformed their business models.

France Telecom’s share price has fallen by over 10% in recent days to hit an eight month low following reports of the possible deal.  The company stressed that negotiations with TeliaSonera have not yet started and that the company is committed to a continued increase of dividends.

TeliaSonera is estimated to have a market value of SEK 221bn (US$ 37.15bn) and the acquisition would create Europe’s largest telecoms company by sales and third biggest by market capitalisation.  The deal would add around 155mn clients for France Telecom, most of which are based in Scandinavia.

Other potential acquisitions rumoured to be targeted by France Telecom include Norwegian incumbent Telenor, which has a market value of NOK 174.34 (US$ 34.68bn).