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TeliaSonera throw out bid of $42 billion by France Telecom

The Swedish government is TeliaSonera’s largest shareholder and they have turned down France Telecom’s bid for the mobile operator of 252.5 billion SKR, which is about $42 billion cash and share option which currently sits at 26% higher than a valuation in mid-April.

Apparently TeliaSonera rejected the offer immediately saying it “substantially undervalues” their business. TeliaSonera’s board along with Swedish government own 37 percent of the company, the Finnish government, a 13.7 percent shareholder has not as yet commented.

Didier Lombard, France Telecom’s CEO said: “We really need to have the full agreement of the TeliaSonera board. Otherwise we won’t be successful.” Lombard went on with he was not shocked at the rebuke from TeliaSonera, but would seek further discussion on the matter.

France Telecom approached TeliaSonera with the deal to purchase 52 percent of TeliaSonera in hard cash and 48 percent in stock. They approached TeliaSonera just as Vodafone announced their joint venture with Verizon Wireless to acquire the Alltel Corp.

If France Telecom is successful in acquiring TeliaSonera it will be their largest acquisition since purchasing Orange for the sum of $55 billion back in 2000, and would make France Telecom the largest telecoms group in Europe as the potential tie-up of France Telecom and TeliaSonera would create a telecom giant with annual sales of 63 billion Euros and in excess of 237 million customers.

Source — marketwatch

Comments

One thought on “TeliaSonera throw out bid of $42 billion by France Telecom”

  1. Condolences to those who deals with TeliaSonera mafia!

    In Lithuania TeliaSonera has unprecedent corruption and bribery infrastructure. Here
    is how their business model works:

    1. “Switch off” any national supervisory institition e.g. communication regulator,
    competition authority etc.

    2. Hire people from government e.g. exministers, regulators, polititicians so that they can secure the
    investments you never made..

    3. Place you former employees to government institutions supervising bodies so that you are
    at least well informed.

    4. Now it’s time to collect money: kill any competitor, monoppolize the network
    infrastructure, arrange corrupted “national projects” funded by government.

    The question many people in Lithuania ask is:

    WHY
    THE SWEDISH GOVERNMENT
    IS TOLERATING TO THIS
    MAFIA STYLE BUSINESS?

    No matter how long time it takes, no matter how much effort it will take TeliaSonera
    will have to responde for it’s criminal actions against our companies and compencate
    all damages and losses.

    TeliaSonera MUST STOP SPREADING CORRUPTION AND BRIBERY IN LITHUANIA!

    Contact us for more info and documentary: info@dbs.lt