Versatel and Tele2 to merge Benelux operations

Tele2 and Versatel have agreed terms to merge their Dutch and Belgian operations, according to Telecompaper without citing sources. Under the deal, Versatel will purchase Tele2’s Dutch and Belgian businesses, issuing new shares to finance the deal. The paper says that shareholders will be able to participate in the share issue on a pro rata basis. In addition, Versatel says that it might have to raise additional capital to complete its business plan, but has yet to decide whether this would take the form of a debt or equity issue. The two companies have been working to complete their merger for nearly a year, having fallen foul of minority shareholders who worked to prevent the tie-up.