Tele2 cuts 130 jobs, completes integration of UTA

1 Apr 2005

Pan-European provider Tele2 says that it has completed the integration of its Austrian unit with fellow alternative telco UTA Telekom, creating the country’s largest indirect provider of consumer and corporate telecommunications. Tele2 acquired UTA last December for EUR213 million in cash and assumed debt. The merger will afford Tele2 significantly lower overheads at its Austrian business, with the operator predicting annual cost synergies of EUR 30 million, though this will be cancelled out in 2005 by the two operators’ estimated integration costs. The merger has seen the headcount across the two companies reduced by 130.

Austria, Tele2 Austria