Telekom Austria and Swisscom end merger talks

20 Aug 2004

Swisscom and Telekom Austria have ended talks over a possible merger after failing to agree terms on how to implement such a proposal to serve the best interests of all involved. It is the third time in two years that the Swiss PTO has mounted a bid for its Austrian counterpart. Under the proposed deal, the Austrian government’s holding company OIAG was to sell its 17% stake in Telekom Austria to Swisscom, while a further 25.2% of the Austrian telco would be acquired by Swisscom in a stock-deal in exchange for an 11% holding in the Swiss company. OIAG would also have been given rights to block company decisions. Telekom Austria is reported to have broken off talks following political controversy over the deal.

Austria, Switzerland, A1 Telekom Austria Group, Swisscom