Swiss government ‘bans’ Swisscom from foreign deals

28 Nov 2005

Switzerland’s government says it will block all foreign acquisitions by Swisscom as long as it remains the telco’s majority shareholder. A spokesman for the country’s finance ministry told local newspaper Swissinfo it was blocking merger bids because the financial risks of a foreign takeover by Swisscom were too high for the government. Following the decision, Swisscom’s hopes of buying Ireland’s eircom and Denmark’s TDC could be ended. However, the announcement comes hot on the heels of an earlier statement from the government which said it wished to sell its entire stake in the country’s largest telecoms group. The state’s 66% holding in Swisscom is currently worth more than CHF17 billion (USD12.9 billion).

Switzerland, Swisscom