Swisscom baulks at Telekom Austria price

22 Apr 2003

Merger talks between Swisscom [NYSE: SCM] and Telekom Austria [NYSE: TKA] are said to have faltered with the two companies apparently unable to agree on a price. Discussions had been ongoing since the start of the year and a deal was thought to be nearing completion. However, the recent rise in Telekom Austria’s stock price is thought to have pushed the purchase out of Swisscom’s price range, despite its strong balance sheet. In an interview with a Swiss financial magazine Swisscom chairman Markus Rauh said his company had no ‘strategic need’ for acquisitions, nor any desire to expand into eastern Europe or any other region.