TeliaSonera rebuffs France Telecom advances
June 6, 2008 - TeliaSonera has rejected a takeover bid worth US$41.75bn from France Telecom as the offer, a mixture of cash (52%) and shares (48%), "substantially undervalues the company" and its growth potential.
Investment bank Dresdner Kleinwort expects France Telecom to increase its offer, while the French giant itself has reaffirmed that it is not interested in paying too high a price or embarking upon a hostile takeover. "Any such combination would be contingent upon a possible transaction being conducted on a friendly basis and in full compliance with France Telecom's previously stated external growth criteria and financial commitments," the company said in a statement.
If France Telecom made a successful bid, the combined company would have a total of 237mn subscribers, including around 1.8mn IPTV subscribers. The French company's major operations are in the Western European countries of France, Spain and the UK, while TeliaSonera is mainly active in Scandinavia. "The combined portfolio would feature an attractive balance of consolidated assets in Western Europe as well as emerging markets", commented France Telecom. "The resulting combination of nimbleness and scale would be key in securing the most advantageous partnerships with the world’s global leaders in software, hardware, content and advertising."
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