Feeds

Orange eyes up TeliaSonera

Superpower or super bloat?

Providing a secure and efficient Helpdesk

France Telecom (Orange) has confirmed it's looking at linking up with Scandinavian operator TeliaSonera, after rumours of a possible merger surfaced in the Le Figaro newspaper yesterday.

TeliaSonera is partly owned by the Swedish and Finish governments, who have 37 per cent and 14 per cent stakes, respectively, and was created in 2002 by the merging of operators Telia and Sonera.

A merger with France Telecom would give the firm the chance to fully privatise the company, something the Financial Times reports it's been wanting to do for a while.

Any merger would require the agreement of all three governments (18 per cent of France Telecom is still in French government hands), so it's unlikely to happen quickly.

TeliaSonera has extensive interests in emerging markets such as Russia, Turkey, Ukraine, Lithuania, Latvia and Estonia. Combining with Orange/France Telecom would create one of the largest European operators, but with such diverse markets it's unclear if the merger would reduce costs.

France Telecom's finance director Gervais Pellisier told the FT: "If you ask me whether we are examining a number of companies, including TeliaSonera, I would say yes, ... But if you are asking whether this is a full-blown examination, we are not there yet."

Le Figaro reports that any deal would be a share swap, to avoid increasing France Telecom's already-impressive debt.

With Orange and France Telecom still fitting together, and Telia and Sonera not achieving the synergies they had hoped from their merger, it might seem foolish to throw them all together.

TeliaSonera's shares jumped ten per cent at the news, while France Telecom saw a six per cent drop in its value. ®

Security for virtualized datacentres

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.