Swedish investment firm East Capital Asset Management has increased its stake in Lithuanian telco TEO LT to 5.54% up from 4.26%, according to Reuters. The Lithuanian fixed line operator was the target of a buyout bid from Swedish telecoms group TeliaSonera, but East Capital’s bid beat the LTL1.83 (USD0.78) per share for the 34.5% of TEO it does not already own, and only 2.88% of shares were tendered. Minority shareholders in TEO, including Danske Bank and East Capital, had earlier rejected TeliaSonera’s TEO offer as too low. Danske Bank said that the Swedish company was ‘trying to take advantage of the recent poor market sentiment in Lithuania by offering this insufficient compensation to minority shareholders.’
Concurrent to the TEO LT offer, TeliaSonera offered a total of EEK5.1 billion for all minority shares in its 60.1%-owned Estonian wireless and wireline holding company Eesti Telekom. The government has accepted the offer for its shares in Eesti and the Swedish company has now raised its stake to above 90%.