France Telecom in contact with Telia, but no extra cash on offer

20 Jun 2008

The Financial Times writes that France Telecom (FT) has entered preliminary talks with TeliaSonera about a USD41 billion informal takeover offer for the Swedish telecoms group. The French group’s chief financial officer Gervais Pellissier told an investor conference that FT was in contact with TeliaSonera about ‘the conditions under which formal negotiations with TeliaSonera could begin,’ though there was no mention of price negotiations. Mr Pellissier indicated that the scope for raising the offer was ‘very limited’ and the stock swap ratio would not change. According to the British newspaper, FT’s ‘friendly’ cash and stock offer was worth SEK55.22 per share when it was revealed on 5 June, falling to SEK54.85 a share based on FT’s closing price last night. TeliaSonera immediately rejected the original offer as substantially undervaluing the company, and is reportedly waiting for a proposal worth at least SEK60 a share.

Sweden, Orange Group, Telia Company